Gold price (XAU/USD) faced a nominal sell-off after registering a fresh two-month high as investors shifted focus to the speech from Federal Reserve (Fed) Chair Jerome Powell, which is likely to give clues about the interest rate outlook for the remainder of 2023. The broader outlook for Gold is still bullish as Middle East tensions have escalated after the Gaza hospital blast, which resulted in the death of hundreds of civilians and created unrest among the general public.
US President Joe Biden returned to Washington after visiting Israel and announced emergency aid for civilians in Gaza. Joe Biden said “loud and clear” that the US stands with Israel and is ready to provide to the country whatever is needed to defend itself against attacks from Hamas. The cautious market sentiment has improved the safe-haven bid significantly, which is keeping demand for bullions intact. Gold price trades inside Wednesday’s range as investors shift focus to Jerome Powell’s speech, which will provide guidance on interest rates. The precious metal stabilizes above the 200-day Exponential Moving Average (EMA), which trades around $1,910.00, indicating a bullish long-term trend. Momentum oscillators have also shifted into the bullish range, indicating more upside ahead.
