Article by: ETO Markets
On Tuesday, stimulated by the hawkish remarks of Federal Reserve Governor Michelle Bowman, U.S. Treasury yields rose again, supporting a rebound in the dollar. Bowman emphasised that monetary policy should remain stable for "some time," indicating that there will be no rate cuts in 2024 and pushing the timeframe for rate cuts to 2025. She even stated that she is willing to raise rates if progress in alleviating inflation stalls or reverses. Meanwhile, traders are awaiting the release of the Personal Consumption Expenditures (PCE) Price Index. If it comes in below expectations, it will rekindle hopes for a rate cut in 2024.
From a technical perspective, during Wednesday's Asian trading session, the XAU/USD price continued Tuesday's trend with a slight decline, briefly breaking the upward trend line. However, strong buying pressure kept the gold price above $…, leaving hope for a rebound. The first target is the 50-day simple moving average of $…, followed by the June high of $…, and then a break above the $… level. Conversely, bearish traders need to wait for the gold price to break below $… to confirm the start of a downward trend, with a target around $...
