Tensions Ease, Dollar Weakens, But Why Isn't Gold Jumping?
Gold prices rose slightly in the Asian trading session on Wednesday (25/06) trying to continue the moderate increase from the previous day. This precious metal had rebounded from a two-week low after the statement by Fed Chairman Jerome Powell who opened the opportunity for a faster interest rate cut if inflation declines and the labor market weakens. This dovish comment caused US bond yields to decline and pressured the US Dollar, thus providing a little fresh air for gold. When this news was published, the price of gold was marketed in the area of $ 3,329 $
Even so, the movement of gold prices is still limited and has not shown strong buying interest. This is due to the easing of geopolitical tensions in the Middle East, especially between Iran and Israel, after optimism emerged regarding a ceasefire. However, the situation is still fragile due to ongoing missile and military attacks, posing a threat that remains a supporting factor for safe haven assets such as gold.
For now, market players are waiting for Jerome Powell's further testimony before the US Congress and the release of other important economic data for the rest of this week. The data will provide clues on the direction of future monetary policy and possible interest rate cuts, which could provide additional support for gold prices if dovish sentiment strengthens.(ayu)
Source: Newsmaker
