Investors Fear Hawkish Signals, Gold Falls!
Gold prices fell ahead of the European session on Tuesday as market participants cautiously awaited Fed Chairman Jerome Powell's speech. With expectations that Powell might signal that the US central bank will remain cautious or cautious in easing interest rates, demand for safe-haven assets like gold has been suppressed. Amidst sensitive market conditions, a slight change in tone from Powell could trigger a sharp reaction.
Furthermore, the strengthening of the US dollar also weighed on gold prices because gold is traded in dollars—the stronger the dollar, the more expensive gold becomes for holders of other currencies, reducing demand. Profit-taking by investors after previous gains could also increase selling pressure. On the other hand, political penetration and monetary policies from various countries have added to the cautious sentiment in the precious metals market.
Source: Newsmaker.id
