Gold Price News and Forecast: XAU/USD stuck within tight $1850-$1860 ranges ahead of key market events
|Gold Price Analysis: XAU/USD strays depressed around mid-$1800s amid mixed clues, eyes Federal Reserve
Gold prices declined below $1,850, currently around $1,849, during the early Asian session on Wednesday. The yellow metal dropped the previous day even as the US dollar index (DXY), which has an inverse relationship with gold, slumped from the weekly top. Although the recent vaccine updates and cautiously optimistic IMF favor the commodity buyers, global traders await the US Federal Reserve's first verdict of 2021 for fresh impulse.
Gold Price Analysis: XAU/USD stuck within tight $1850-$1860 ranges ahead of key market events
It’s been a subdued session for spot gold prices (XAU/USD), which have traded within thin $1850-$1860 ranges throughout the entire day despite a softer US dollar. The buck was weighed in line with other safe-haven currencies and apparently also precious metals markets amid an improvement in the market’s appetite for risk given the latest positive vaccine updates. Meanwhile, bond market signals have not been very strong (note that movements in US real yields and inflation expectations are a key driver of precious metal price action). Ahead of the close of US trade, the precious metal trades around 0.2% or $3 lower on the day.
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