Gold Price Remains Confined In a Familiar Range Looks To Fed’s Powell For Fresh Impetus
Gold price (XAU/USD) extends its consolidative price move on Wednesday and oscillates in a narrow range below the $2,650 level during the Asian session. Traders now seem reluctant and opt to wait for more cues about the Federal Reserve's (Fed) rate-cut path before placing directional bets. Hence, the market focus will remain glued to Fed Chair Jerome Powell's speech later today. Apart from this, the closely watched US Nonfarm Payrolls (NFP) report should guide Fed policymakers on their next monetary policy decision and provide some meaningful impetus to the non-yielding yellow metal.
In the meantime, the upbeat US data released on Tuesday eased fears of a significant slowdown in the labor market. This, along with expectations that US President-elect Donald Trump's expansionary policies will boost inflation, might force the Fed to take a cautious stance on cutting rates. This, in turn, remains supportive of a modest uptick in the US Treasury bond yields, which acts as a tailwind for the US Dollar (USD) and caps the upside for the Gold price. That said, persistent geopolitical uncertainty and concerns about Trump's tariff plans continue to offer some support to the safe-haven XAU/USD.(Cay)
Source: Fxstreet
