Gold price keeps the red above $3,300; looks to key US macro data for fresh impetus
Gold price (XAU/USD) sticks negative bias for the second successive day, though it manages to hold above the $3,300 round figure heading into the European session on Wednesday. The global equity markets continue to rise amid signs of easing US-China trade tensions and US President Donald Trump's decision to give flexibility on tariffs to US carmakers. This, along with a modest US Dollar (USD) uptick, turn out to be key factors undermining demand for the safe-haven precious metal.
Meanwhile, Trump's rapidly shifting stance on trade policies has been received poorly by investors and led to a mass pivot away from US assets recently. Adding to this, prospects for more aggressive policy easing by the Federal Reserve (Fed), amid heightened concerns over the economic impact of tariffs, might continue to act as a headwind for the USD. This, in turn, lends some support to the non-yielding Gold price and limits the downside, warranting some caution for bearish traders.
On the geopolitical front, Russia dismissed Ukraine’s proposal to extend Russian President Vladimir Putin’s unilateral three-day ceasefire to 30 days. Moreover, the US threatened to stop its efforts to end the conflict between Russia and Ukraine if both parties didn't deliver concrete proposals. This further contributes to limiting the downside for the XAU/USD pair.
Traders now look to Wednesday's US economic docket – featuring the ADP report on private-sector employment, the Advance Q1 GDP print, and the Personal Consumption and Expenditure (PCE) Price Index. This, along with the US Nonfarm Payrolls report on Friday, should provide cues about the Fed's policy outlook and influence the commodity in the near term.
Source; Fxstreet
