Article by: ETO Markets

Gold prices (XAU/USD) have ended three-day winning streak on Wednesday, influenced by a modest rebound in the US Dollar (USD) and hawkish comments from several Fed officials. Stronger-than-expected US economic data have also reduced expectations of a Fed rate cut in September, pressuring gold.

Despite this, ongoing geopolitical tensions and uncertainty continue to support demand for safe-haven assets like gold. Additionally, increasing central bank demand is expected to sustain higher gold prices in the near term.

Gold traders focus on the speech by Fed’s John Williams on Wednesday. The upcoming release of the US Core PCE on Friday is also important, with projections showing a 0.3% MoM and 2.8% YoY increase in April. Persistent inflation could delay Fed rate cuts, applying downward pressure on gold due to higher opportunity costs associated with rising interest rates.