Gold price retreats from over two-week top,bulls turn cautious ahead of US CPI
Gold price (XAU/USD) prolongs its weekly uptrend for the third consecutive day on Wednesday and climbs to a two-and-half-week high during the Asian session. The commodity now looks to extend the momentum beyond the $2,700 mark and remains well supported by a combination of factors. Geopolitical risks stemming from the worsening Russia-Ukraine war and tensions in the Middle East, along with concerns over US President-elect Donald Trump's tariff plans, continue to boost safe-haven demand. Adding to this, the expected interest rate cuts by major central banks offer additional support to the non-yielding yellow metal.
That said, the recent US Dollar (USD) move up to a near one-week top touched on Tuesday keeps a lid on any further gains for the USD-denominated Gold price. Furthermore, bulls opt to lighten their bets ahead of the release of the US consumer inflation figures later today, which might guide Fed policymakers on their decision next week. This, in turn, will influence the USD and provide a fresh impetus to the precious metal. The fundamental backdrop, meanwhile, suggests that the path of least resistance for the XAU/USD is to the upside.(Cay)
source: Fxstreet
