Despite the rebound, gold’s upside appears capped around $1794 ahead of the US PCE Inflation data, which shed more light on the inflation picture and the Fed’s next policy move.
Gold stays on the front foot, picks up bids to $1,780, as market players brace for Friday’s European session.
While the pre-data cautious sentiment could be spotted behind the greenback’s downbeat performance, the risk-on mood also cuts the USD’s safe-haven demand and adds gains to the gold prices.
Among the key risk catalysts, US stimulus and trade headlines were the major favor to the market sentiment.
On the contrary, Australia’s local lockdowns and the EU’s rejection to have a summit with Russian leader Vladimir Putin, coupled with the Fed’s recalling of the pandemic-led relief measures for the large banks, test the market sentiment and gold.
However, softer inflation figures will propel the upbeat Fedspeak and buoy risk appetite, also helping the gold prices to keep the recovery moves.
However, a clear upside break of $1,781 becomes necessary for the bulls to refresh the weekly top with $1,797.
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US Treasury yields retreat, DXY struggles ahead of the Fed’s preferred inflation gauge of inflation.
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