Gold Price Holds Intraday Gains Amid Mixed Geopolitical and Fed Cues

Gold Price Holds Intraday Gains Amid Fed Cues and Geopolitical Uncertainty

Gold (XAU/USD) remains supported on Wednesday, hovering above the $3,300 level as traders navigate mixed market signals. A weaker US Dollar driven by expectations of Federal Reserve rate cuts is lending support to the precious metal. However, bullish conviction remains limited amid cautious market sentiment and renewed interest in the Greenback following Fed Chair Jerome Powell’s hawkish remarks on Tuesday.

Fed Outlook Keeps USD in Check

Despite Powell's firm stance, markets increasingly anticipate a rate cut as early as next month. This has helped cap USD strength, giving non-yielding assets like Gold some breathing room. Nevertheless, any fresh USD buying on hawkish Fed commentary could suppress further gains in gold prices.

Geopolitical Risk Still a Factor

While optimism over the Israel-Iran ceasefire supports risk sentiment, recent military actions from both sides raise concerns about the truce's sustainability. This lingering uncertainty keeps geopolitical risk premium alive, providing a cushion for safe-haven demand in the gold market.

Traders Eye Key US Data and Powell’s Testimony

Investors now await the second day of Powell’s testimony and this week's US macroeconomic indicators—including GDP and PCE data—for stronger directional cues. Until then, the XAU/USD pair is likely to remain range-bound with a modest upward bias.

Further Reading on Tredu.com

• Forex Today: US Dollar Stabilizes Ahead of Housing Data and Powell Testimony
• Silver Price Forecast: XAG/USD Tests Key Support at $35.50
• Oil Creeps Up After Two-Day Drop on Ceasefire Agreement