Gold Market
Gold edged below $4,350 on Tuesday as the Federal Reserve's hawkish stance countered a decline in US bond yields. The metal's downside appears limited amid geopolitical tensions and mixed technical signals.
Gold prices erased gains and slid after the Federal Reserve hiked rates by 25 bps to a 3.75-4.00% range, with most officials projecting at least one more increase this year.
Gold failed to break above $4,500 and corrected lower, dipping below $4,450 and testing the $4,250 support zone. A bearish trend line at $4,355 is capping near-term gains.
Gold trimmed its intraday losses on Tuesday but remained under pressure from a rising US Dollar and multi-year high Treasury yields as markets awaited a widely expected Fed interest rate hike.
Gold trades in a narrow range just above $4,300 as a resilient US dollar and expectations of hawkish decisions from the Fed, BoE, and BoJ this week cap gains.
Gold is subdued around $4,330 at the start of a key week for the Federal Reserve. Rate hike expectations and rising bond yields are weighing on the precious metal.
Gold rose more than 1% on Wednesday, supported by the US Treasury's announcement of a bond buyback for September 10, even as the US Dollar clawed back some losses and yields edged higher.
Gold rebounds from a one-week low near $4,340 as the US dollar weakens. However, expectations of further rate hikes and rising geopolitical tensions cap the upside ahead of US inflation data.
Gold reversed from the $4,700 area and corrected to $4,280 before bouncing. A bearish trend line at $4,480 now caps the recovery attempt.