Gold Price Forecast: XAUUSD seems vulnerable near two-week low, eyes US PCE inflation data By HareshMenghani Gold Commodities Fed Inflation XAUUSD
D was last seen hovering around the $1,816 region and was pressured by the prospects for more aggressive rate hikes by theSpeaking at the ECB's annual forum on Wednesday, Powell said that the US economy is well-positioned to handle tighter policy and that the US central bank remains focused on getting inflation under control. Adding to this, Cleveland Fed President Loretta Mester said that policymakers should act forcefully to curb price pressures.
That said, a combination of factors held back traders from placing aggressive bearish bets and limit any deeper losses for the XAUUSD. at least for the time being. Despite the Fed's hawkish outlook, the struggled to capitalize on its two-day-old positive trend amid the ongoing decline in the US Treasury bond yields. This, along with the prevalent risk-off mood, offered some support to the safe-haven gold amid recession fears.remains fragile amid concerns that rapidly rising interest rates and tighter financial conditions would pose challenges to global economic growth.
The mixed fundamental backdrop warrants some caution before positioning for any further depreciating move, through the technical set-up favours bearish traders. The recent attempted recovery moves have repeatedly faced rejection near the very important 200-day SMA and suggest that the bearish trend for gold prices might still be far from being over.
Market participants now look forward to the US economic docket, featuring the Core PCE Price Index - the Fed's preferred inflation gauge - and the usual Weekly Initial Jobless Claims. This, along with the US bond yields, will influence the USD price dynamics. Apart from this, the broader risk sentiment might provide a fresh impetus to gold.
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