Gold lacked any firm directional bias and remained confined in a narrow trading band through the first half of the European session on Wednesday.
Adding to this, a subdued US dollar demand – amid a modest downtick in the US Treasury bond yields – further held traders from placing fresh bearish bets around the dollar-denominated commodity.
Apart from this, fresh economic projections and Fed Chair Jerome Powell’s tone at the post-meeting press conference will play a key role in influencing the near-term USD price dynamics.
Looking at the technical picture, the recent break below a short-term ascending trend-line – extending from YTD lows – might have shifted the bias in favour of bearish traders.
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GBP/USD is trading around 1.41, rising after the UK reported an annual inflation rate of 2.1% in May, beating estimates and raising the chances of a BOE rate hike.
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