Gold Steady, Strong Dollar Limits Gains
Gold (XAU/USD) strengthened on Wednesday after falling to a nearly two-week low of $4,842 in the previous session. Buyers capitalizing on the dip helped limit selling pressure, making the correction relatively shallow. As of writing, XAU/USD was trading around $4,915, up nearly 0.75% on the day.
Despite the rebound, gold's short-term outlook remains slightly bearish. Easing geopolitical risks—along with signs of progress in the US-Iran nuclear talks in Geneva and US-led efforts to address the Russia-Ukraine conflict—are limiting safe-haven demand and curbing gold's upward momentum.
From a macro perspective, a strengthening US dollar and higher yields remain key headwinds. Resilient US employment data has led markets to temper expectations of an imminent interest rate cut, although more moderate inflation keeps the possibility of policy easing in the second half of the year open. Fed officials also expressed caution, with Michael Barr suggesting interest rates would need to remain restrictive "for some time" until there is clearer evidence of inflation moving toward the 2% target.
Investors' focus now turns to the US data agenda, particularly the FOMC meeting minutes, followed by Q4 GDP and Core PCE on Friday, which could potentially provide new direction for gold. Broadly speaking, gold's uptrend is still considered intact, so the current movement is viewed more as a consolidation phase than a structural change in bullish momentum. (alg)
Source: Newsmaker.id
