Gold prices remain upbeat amid waning Fed rate cut speculations
Gold prices (XAU/USD) traded with a mild negative bias through the first half of the European session and for now, seems to have snapped a four-day winning streak to a one-month high touched on Friday.
The upbeat US Nonfarm Payrolls (NFP) report reinforced market expectations that the Federal Reserve (Fed) will pause its interest rate-cutting cycle later this month.
This kept the US Treasury bond yields elevated near their highest levels in over a year and the US Dollar (USD) near two-year highs, which in turn, exerted some pressure on the non-yielding yellow metal.
Meanwhile, hawkish Fed expectations, coupled with persistent geopolitical tensions, dampened investors’ appetite for riskier assets
This was evident from a softer tone around the equity markets and continued to lend support to the safe-haven Gold prices.
Hence, it would be prudent to wait for a strong follow-through selling before confirming that the XAU/USD bull run witnessed over the past three weeks or so has run its course and is ready for a meaningful correction. Investors now look forward to the release of US inflation figures this week for a meaningful impetus.
Source: FXStreet
