Markets are paying limited attention to the reduced bets for aggressive rate cuts from the US Federal Reserve (Fed) coupled with strong US economic data and hawkish Fedspeak, as the US Dollar is bearing the brunt of the broader market optimism and negative US Treasury bond yields.

The US Treasury bond yields are extending their pullback, as markets anticipate a big auction of the US 10-year Treasury bonds later on Wednesday. These factors are helping Gold price stay afloat.

Amid a lack of top-tier economic data releases from the United States (US), the focus will continue to remain on the Fedspeak, sentiment on Wall Street and developments in the Chinese markets. Traders look forward to Chinese inflation data due this Thursday for fresh signs on the state of the economy. Fed policymakers Barkin, Bowman and Kugler are expected to speak in the latter part of the day.

On Tuesday, Philadelphia Fed President Patrick Harker said that the “economy is on track for a soft landing.”

Gold is consolidating after Oct-Dec 2023 18% advance, a part of larger uptrend from $1616 (Nov 2022 higher low) with strong prospects for further gains, as growing global geopolitical tensions, economic uncertainty and signals that the Fed considers interest rates cuts later this year, continue to keep demand for safe-haven bullion steady.

The price is likely to continue to fluctuate within current range, awaiting fresh signals from fundamental side as technical studies on all larger timeframes remain bullishly aligned and contribute to positive outlook.

Support levels: 2,030; 2,025; 2019
Resistance levels: 2,045; 2,041; 2,038

Prepared by: Mr. SAM KIMA, Senior Vice President