Gold is bouncing back towards the $2400 psychological level after slightly weaker US macroeconomic data was released this week.
Weaker inflation readings have helped gold bulls to come close to their all-time high once again. The other key macroeconomic data was also in favor of the yellow metal.
Despite this, several Fed officials indicated that more data may be needed to properly access the trend before any action is taken on interest rates.
Persistently high inflation may prevent the Fed from making the much-anticipated rate cuts sooner.Currently, the market is implying:
Higher for longer interest rates could have a negative impact on zero-yielding bullion.
However, any significant increase in the probability of a cut in the foreseeable future could push gold higher.Support for XAUUSD may also come in the form of continued physical gold buying by central banks, as well as any sudden geopolitical turbulence.More By This Author:The World’s Largest Retailer – Walmart, Will Release Its Earnings Today USD Rebounds Ahead Of Fed Chair Powell’s Speech This Week: GBPUSD Bulls Are Trying To Move Closer To 200-Period SMA
