Gold consolidates around $ 1440, eyes US data for fresh direction
|- Side-lined amid US dollar comeback, less dovish Fed policy outlook.
- US-Iran geopolitical tensions offer support ahead of US macro news.
Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.
The yellow metal extended the overnight correction, largely on the back of a solid rebound staged by the US against its main rivals. The greenback was helped by the NY Fed’s clarification on President Williams’ dovish comments that poured cold water on aggressive Fed rate cut in July, weighing negatively on the non-yielding gold.
Moreover, the latest remarks from the St. Louis Fed President Bullard, citing that a 25 bps Fed rate cut this month would be appropriate, strengthened the broad USD recovery. However, the downside in the safe-haven remains restricted by escalating US-Iran geopolitical tensions and subdued trading seen around the Treasury yields.
In the session ahead, the US UoM Consumer Sentiment data will fuel fresh dollar trades, eventually impacting gold prices. Also, in focus remains the Fedspeak for fresh hints on the Fed’s interest rates outlook.
Levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.