XAU/USD moved lower after consistently rising sharply for three consecutive days and touching new highs, retreating as investors digested Fed Chairman Jerome Powell’s less than convincing speech on expectations of interest rate cuts.
At 9.20 am, gold prices were at $3,742, up 0.19% since it opened in early trading Thursday in the Asian session.
Jerome Powell said that his officials need to look at both mandates fairly, emphasizing that labor market risks have increased and inflation also remains relatively high. This situation will limit the Fed’s confidence and is more likely to remain neutral.
On the data side, housing data was positive on Wednesday after the S&P Global Flash Purchasing Managers’ Index (PMI) report was weaker than expected.
The sharp decline in Bullion prices can also be attributed to the increase in US Treasury yields, which supports the American currency. The US Dollar Index (DXY) rose 0.66% to 97.85.
Looking ahead to the geopolitical conflict, President Donald Trump expressed confidence that Ukraine will regain its territory from Russia.
The US economic docket will feature Gross Domestic Product (GDP) figures, Initial Jobless Claims data and the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.
