Gold Quietly Waits, What Are Traders Afraid Of?
Gold (XAU/USD) prices seemed to struggle to capitalize on modest intraday gains and remained below overnight swing highs as traders opted to wait for the release of the US Consumer Price Index (CPI). The crucial consumer inflation data will play a key role in influencing market expectations over the Federal Reserve’s (Fed) rate cut path, which in turn will drive the US Dollar (USD) and provide a fresh directional impetus to the non-yielding Gold prices.
Meanwhile, the USD attracted some buyers amid some repositioning trade ahead of the key data woes. This, along with the latest optimism over a positive outcome from the US-China trade talks, acted as a headwind for the safe-haven Gold prices. However, the USD market participants seemed reluctant amid growing acceptance that the Fed will cut interest rates further in 2025. Moreover, geopolitical risks continued to support the offered tone surrounding the XAU/USD pair.
Source: FXStreet