Gold moves sideways in price range
Gold remains rangebound, Fed in focus
Spot gold was flat at $1,957.88 an ounce, while gold futures fell 0.1% to $1,971.20 an ounce by 21:05 ET (01:05 GMT).
Both contracts stuck to a tight trading range seen over the past month amid mixed cues on the path of U.S. monetary policy, which has largely determined the trajectory of gold over the past year.
While the Fed paused its rate hike cycle for the first time in over a year last week, the bank still warned of the possibility of at least two more hikes this year, dimming the prospect of a recovery in gold prices.
Higher interest rates weigh on gold prices by pushing up the opportunity cost of holding non-yielding assets. While the dollar still dropped after the Fed decision last week, gold saw limited support.
Markets are now pricing in a 25 basis point hike by the Fed in July, given that inflation is still trending well above the central bank’s 2% annual target.
A testimony before Congress by Fed Chair Powell on Wednesday is expected to provide more cues on monetary policy, while several more Fed officials are also due to speak during the week.
XAUUSD BUY 1955 - 1957
✅ TP1: 1960
✅ TP2: 1965
✅ TP3: 1968
🛑 SL: 1950
Spot gold was flat at $1,957.88 an ounce, while gold futures fell 0.1% to $1,971.20 an ounce by 21:05 ET (01:05 GMT).
Both contracts stuck to a tight trading range seen over the past month amid mixed cues on the path of U.S. monetary policy, which has largely determined the trajectory of gold over the past year.
While the Fed paused its rate hike cycle for the first time in over a year last week, the bank still warned of the possibility of at least two more hikes this year, dimming the prospect of a recovery in gold prices.
Higher interest rates weigh on gold prices by pushing up the opportunity cost of holding non-yielding assets. While the dollar still dropped after the Fed decision last week, gold saw limited support.
Markets are now pricing in a 25 basis point hike by the Fed in July, given that inflation is still trending well above the central bank’s 2% annual target.
A testimony before Congress by Fed Chair Powell on Wednesday is expected to provide more cues on monetary policy, while several more Fed officials are also due to speak during the week.
XAUUSD BUY 1955 - 1957✅ TP1: 1960
✅ TP2: 1965
✅ TP3: 1968
🛑 SL: 1950
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