Due to one week losing streak of Gold price, it appeals some sellers on Tuesday and stops the last presumable bounce from the $2145 zone. The CPI reports about inflation rate which published in last week propellant the hypothesis that the Fed will go with its high interest rate policy in long run. Further, instead of three 25 basis points rate cuts predicted previously, it will change its further guidance to two for the following year 2024. This will help in boosting the US Treasury bond returns and will be appreciating the US Dollar to a two-week high rate. Right after this one can see undercutting the implacable Gold.
Every related market is still hoping that the Fed policy makers should start the rate-cutting cycle before the June policy meeting. The geopolitical tensions that originate form the prolonged Russia-Ukraine war and conflicts in Middle East can be helpful in stabilizing the Gold Price. Traders would like to hold for their new speculations around XAU/USD, until they get the final words form Fed about rate-cutting cycle. Fingers crossed for crucial FOMC decision which is going to take place on Wednesday as it will set the fate for USD and precious metal.
