❗️Gold Faces Resistance Amid Risk-On Sentiment: Fed Officials Dampen Rate Cut Hopes❗️
Gold (XAU/USD) begins the week with modest gains but lacks strong bullish conviction. The precious metal faces resistance as top Federal Reserve officials downplay expectations of early interest rate cuts, contributing to a risk-on sentiment in global equities. Traders await the US Core PCE Price Index, the Fed's preferred inflation gauge, on Friday for insights into monetary policy.
Last week, the Fed signaled a halt to its tightening cycle, with the "dot plot" suggesting potential rate cuts in 2024. Speculation of rate cuts in March restrains the US Dollar, supporting gold. Geopolitical risks and concerns about global economic downturns further underpin gold prices. The overall outlook favors bullish sentiment, suggesting that any correction could be seen as a buying opportunity. The absence of major economic releases from the US on Monday limits potential market movements.
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