Gold price holds above $3,300, upside seems capped amid modest USD strength, ahead of FOMC Minutes
Gold price (XAU/USD) attracts some dip-buyers on Wednesday and reverses a part of the previous day's heavy losses, though it lacks bullish conviction amid mixed cues.
The uncertainty surrounding US President Donald Trump's trade tariffs, US fiscal concerns, and geopolitical risks keep a lid on the market optimism, which, in turn, revive demand for the safe-haven bullion. Apart from this, bets that the Federal Reserve (Fed) will cut rates further in 2025 act as a tailwind for the non-yielding yellow metal.
Meanwhile, Tuesday's better-than-expected US economic releases assist the US Dollar (USD) to gain positive traction for the second straight day. This, along with a generally positive tone around the equity markets, contributes to capping gains for the Gold price.
Traders also seem reluctant to place aggressive directional bets around the XAU/USD pair and now look to FOMC Minutes for some meaningful impetus. This, in turn, warrants some caution before positioning for the resumption of the recent uptrend.
The US Census Bureau reported on Tuesday that Durable Goods Orders declined by 6.3% in April, marking a significant decline and a stark turnaround from the 7.6% increase (revised from 9.2%) in the previous month. The reading, however, was better than the market expectation for a decrease of 7.9%. Adding to this, orders excluding transportation rose 0.2% during the reported month.
Source: Fxstreet
