Gold Price Forecast: XAU/USD loses bullish momentum as focus shifts to FOMC Minutes
The XAU/USD pair registered strong gains on Tuesday and closed near the key resistance located at $1,745. However, the pair lost its momentum on Wednesday and seems to have gone into a consolidation phase. As of writing, gold was down 0.25% on a daily basis at $1,738.
A modest rebound witnessed in the US treasury bond yields made it difficult for XAU/USD to continue to push higher. The benchmark 10-year US T-bond yield, which lost more than 3% on Tuesday, rose as much as 1% on Wednesday and allowed the greenback to stay resilient against its peers.
Gold to see further downside pressure while palladium stands out – CE
Strategists at Capital Economics continue to expect the vaccine rollout to enable economies to re-open later this year, which should bolster riskier assets and weigh further on the price of gold. What’s more, the palladium price surged in March, and it will continue to outperform the price of platinum over the next few years.
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