Gold Price Remains Depressed Below $2,650 Amid Expectations For a Less Dovish Fed.
Gold price (XAU/USD) attracts some sellers during the Asian session on Thursday, albeit it remains confined in a familiar range held over the past week or so amid mixed fundamental cues. Investors now seem convinced that the Federal Reserve (Fed) will take a cautious stance on cutting rates. The bets were reaffirmed by hawkish remarks by several FOMC members, including Fed Chair Jerome Powell. This, in turn, assists the US Treasury bond yields to rebound slightly from their lowest closing levels in more than a month and undermines the non-yielding yellow metal.
Apart from this, the prevalent risk-on environment is seen as another factor exerting some downward pressure on the safe-haven Gold price. That said, persistent geopolitical tensions stemming from the worsening Russia-Ukraine conflict and concerns about US President-elect Donald Trump's tariff plans act as a tailwind for the XAU/USD. Furthermore, the lack of any meaningful US Dollar (USD) buying contributes to limiting losses for the commodity. Traders might also opt to wait for the release of the crucial US Nonfarm Payrolls (NFP) report on Friday before placing directional bets.(Cay)
Source: Fxstreet
