Gold Prices Edge Lower Amid Cautious Market Sentiment
Gold prices (XAU/USD) faced renewed selling pressure after briefly climbing to the $2,652 level during the Asian session, though they remain above the one-week low recorded on Tuesday. Market expectations that the Federal Reserve (Fed) may adopt a cautious approach to cutting interest rates have contributed to elevated US Treasury bond yields. This dynamic continues to bolster the US Dollar (USD), weighing on demand for the non-yielding precious metal.
Investors are likely to adopt a wait-and-see approach ahead of the Federal Open Market Committee’s (FOMC) two-day policy meeting, which concludes later today. Meanwhile, ongoing geopolitical tensions, including the Russia-Ukraine conflict, unrest in the Middle East, and concerns over potential trade wars, could provide support for gold as a safe-haven asset. These factors suggest traders should exercise caution before anticipating a further decline from gold’s recent one-month high.
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