On Tuesday’s session, the Gold spot price XAU/USD was spotted trading at $2,030, reflecting a 0.43% gain, as the bears are taking a breather after last week’s notable 2% loss. The daily chart presents a neutral-to-bearish sentiment with the bears while, the four-hour indicators are slightly tilted to the upside, suggesting an imminent potential shift in momentum.
Fundamentally speaking, strong US economic data and hawkish sentiments from the Federal Reserve (Fed) have led to significant selling of metals, causing doubts about an impending Fed rate-cutting cycle. In that sense, as markets start to adjust their bets on the Fed, the upside potential for the metal is capped, as it is causing US yields, often seen as the cost of holding non-yielding metals to rise.
Source: Fxstreet
