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Gold price (XAU/USD) sticks to modest intraday losses through the early European session on Wednesday, though it lacks any follow-through selling and remains close to a multi-month peak touched last week. A generally positive tone around the equity markets is seen as a key factor acting as a headwind for the safe-haven precious metal. That said, bets that the Federal Reserve (Fed) will keep cutting rates in 2025, a fresh leg down in the US Treasury bond yields and modest US Dollar (USD) downtick act as a tailwind for the non-yielding yellow metal. Apart from this, concerns about US President Donald Trump’s tariff plans might contribute to limiting losses for the Gold price. Traders also seem reluctant to place aggressive bets and opt to move to wait for more cues about the Fed’s rate cut path. Hence, the focus will remain glued to the outcome of a two-day FOMC monetary policy meeting, due to be announced later during the US session. The crucial Fed decision will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the commodity.
Gold price is weighed down by receding safe-haven demand; Fed rate cut bets help limit losses
Gold price weakness below the $2,755-2,753 support could be seen as a buying opportunity
From a technical perspective, the recent breakout through the $2,720-2,725 horizontal barrier and positive oscillators on the daily chart suggest that the path of least resistance for the Gold price remains to the upside. A subsequent move above the $2,772-2,773 area will reaffirm the constructive outlook and lift the XAU/USD beyond the $2,786 area, or the highest level since October 2024 touched last Friday, towards the all-time peak, near the $2,790 zone. Some follow-through buying, leading to a strength beyond the $2,800 mark, will be seen as a fresh trigger for bullish traders and pave the way for an extension of a well-established uptrend witnessed over the past month or so.On the flip side, weakness below the $2,755-2,753 immediate support might continue to attract some buyers and remain limited near the weekly swing low, around the $2,730 area touched on Monday. Some follow-through selling below the $2,725-2,720 resistance-turned-support could pave the way for deeper losses and drag the Gold price to the $2,707-2,705 area en route to the $2,684 region.More By This Author:WTI Trades With Modest Losses Around $73.25 Area, Down Nearly 0.50% For The Day Pound Sterling Price News And Forecast: GBP/USD Fails To Stabilize Above 1.2500 USD/CAD Sticks To Modest Gains Above 1.4400, Over One-week Top Ahead Of US Data