Gold stuck in range as markets await US PCE data
Gold remains rangebound between $4,000 and $4,200 as a softer dollar and rising Treasury yields offset each other. Traders now look to the US PCE inflation report for directional cues.
Gold (XAU/USD) is trapped in a month-long consolidation between $4,000 and $4,200, with neither bullish nor bearish forces strong enough to trigger a breakout. The Federal Reserve's latest decision to hold interest rates steady and its limited forward guidance have left the metal without a clear direction.
A softer US dollar is providing some underlying support for gold, while rising Treasury yields are applying downward pressure. The tug-of-war between these two factors has kept prices hovering in a narrow range.
Market attention now shifts to the upcoming US PCE inflation data, which could be the catalyst needed to break the stalemate. A higher-than-expected reading might strengthen the dollar and push gold lower, while a softer print could weaken the dollar and lift bullion prices.
Source: FXStreet Forex News