Dear friends.
Gold prices (XAU/USD) traded with a mild positive bias throughout the first half of the European session on Tuesday, although lacking follow-through and remaining near weekly lows, around the $2,150 region touched the day before. Uncertainty over the Federal Reserve's (Fed) rate-cutting roadmap turned out to be the main factor holding back traders from placing new directional bets around the unprofitable yellow metal. Meanwhile, warmer-than-expected US consumer inflation data on Tuesday fueled speculation that the Fed may maintain higher levels for a more permanent narrative in the near term. This, coupled with the underlying strong bullish sentiment in global equity markets, acts as a drag on the precious metal.
Meanwhile, traders will take cues from the release of US Retail Sales and Producer Price Index (PPI) on Thursday. However, the fundamental backdrop makes it prudent to wait for the next round of strong buying before positioning for a continuation of the two-week uptrend.
Gold prices (XAU/USD) traded with a mild positive bias throughout the first half of the European session on Tuesday, although lacking follow-through and remaining near weekly lows, around the $2,150 region touched the day before. Uncertainty over the Federal Reserve's (Fed) rate-cutting roadmap turned out to be the main factor holding back traders from placing new directional bets around the unprofitable yellow metal. Meanwhile, warmer-than-expected US consumer inflation data on Tuesday fueled speculation that the Fed may maintain higher levels for a more permanent narrative in the near term. This, coupled with the underlying strong bullish sentiment in global equity markets, acts as a drag on the precious metal.
Meanwhile, traders will take cues from the release of US Retail Sales and Producer Price Index (PPI) on Thursday. However, the fundamental backdrop makes it prudent to wait for the next round of strong buying before positioning for a continuation of the two-week uptrend.
