Gold retains its positive bias amid a broadly weaker USD; lacks bullish conviction
The post Gold retains its positive bias amid a broadly weaker USD; lacks bullish conviction appeared on BitcoinEthereumNews.com.
Gold price attracts some buyers as Fed independence fears boost safe-haven demand. Fed rate cut bets exert additional pressure on the USD and benefit the XAU/USD pair. The optimism surrounding the Israel-Iran truce caps gains for the safe-haven commodity. Gold price (XAU/USD) trades with a mild positive for the second straight day on Thursday, though it lacks follow-through and remains below the $3,350 level through the early European session. Reports that US President Donald Trump was considering replacing Federal Reserve (Fed) Chair Jerome Powell raised concerns over the future independence of the US central bank. This, along with bets that the Fed will cut interest rates further this year, drags the US Dollar (USD) to its lowest level since March 2022 and acts as a tailwind for the non-yielding yellow metal. Meanwhile, a ceasefire between Israel and Iran is holding for now, and the optimism keeps a lid on any meaningful upside for the safe-haven bullion. This, in turn, warrants some caution before confirming that the Gold price has bottomed out in the near term and positioning for a further recovery from sub-$3,300 levels, or a two-week low touched on Tuesday. Traders now look to the US macro data, which, along with speeches from FOMC members, might influence the XAU/USD pair ahead of the release of the US Personal Consumption and Expenditure (PCE) Price Index on Friday. Daily Digest Market Movers: Gold price traders seem non-committed amid mixed fundamental cues US President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell for not cutting rates and said he was considering several candidates to replace him. In fact, Powell reiterated on Wednesday that the central bank is well-positioned to wait to cut interest rates until the inflationary effects of Trump’s wide-ranging tariffs are better known. The Trump-Powell standoff comes…
