Gold holds steady around $4,650 as traders look to US PCE for Fed rate cues
Gold (XAU/USD) extends its two-way price moves for the second straight day and trades above $4,650 during the Asian session on Wednesday.
Gold prices held steady near $4,650 on Wednesday as market participants awaited key economic data and Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium. Traders focused on the US Personal Consumption Expenditures (PCE) Price Index, which could provide a significant impetus. Meanwhile, the Federal Reserve (Fed) and the US Treasury's buyback strategy contributed to a decline in US bond yields.
Positive developments in the Middle East, coupled with Iran's sanctions relief and the potential end to a naval blockade, also supported the Gold price by easing inflation concerns and weakening the US Dollar. The technical analysis suggested that bulls might be waiting for a move above $4,700 before placing fresh bets on the XAU/USD pair, with a potential target of the 61.8% level at $4,856 and higher.
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Also reported by 2 other outlets
- Gold consolidates after 5-day rally as investors eye Fed rate clues thehindubusinessline.com
- Gold holds five-day gain as traders turn focus to Fed rate path moneyweb.co.za
