Gold Weakens, Dollar Rebounds
Gold prices (XAU/USD) moved negatively in the Asian session on Wednesday (August 27th), after falling from a two-week peak of $3,395. Pressure came primarily from profit-taking and a modest rebound in the US dollar. However, downside room is considered limited as concerns over the Fed's independence following US President Donald Trump's increasingly aggressive push to remove one of its governors tend to maintain interest in safe-haven assets like gold.
On the geopolitical front, market participants continue to monitor the Russia-Ukraine conflict. Escalating tensions typically boost gold prices, while signals of progress toward a peace agreement have the potential to depress prices in the short term.
The next focus is the release of the US PCE Price Index (July) on Friday. Consensus estimates headline PCE at 2.6% YoY and core PCE at 2.9% YoY. If inflation is higher than expected, the Fed's room to cut interest rates could narrow supporting the dollar and weighing on gold. Conversely, more benign data could support the precious metal.
For now, gold's direction will be determined by the strength of the dollar, US bond yields, and headlines related to the Fed and geopolitics. Traders are likely to await key data while maintaining a cautious stance. (ayu)
Source: Newsmaker.id
