Gold price (XAU/USD) attempts to resume upside journey after the United States Bureau of Economic Analysis (BEA) reported in its final estimate report that the economy grew by 4.9% against estimates and the former reading of 5.2%. This has brought a sharp sell-off in the US Dollar, which has already been on the back foot due to soaring expectations of rate cuts by the Fed. Few investors still believe that the US central bank is not going to lower rates sooner amid the resilience of the US economy.
Philadelphia Fed Bank President Patrick Harker also pushed back expectations of upcoming cuts in borrowing costs. Harker said he sees a soft landing, but warned that unemployment could rise moderately. Further action in the Gold price will be driven by the US core Personal Consumption Expenditure Price Index (PCE) for November, due on Friday. A report signalling that inflation remains sticky could slow down a broader rally in the Gold price as it would likely force Federal Reserve (Fed) policymakers to opt for a more restrictive monetary policy stance. Gold price continues to trade sideways below $2,040.00. The precious metal trades inside Tuesday’s range amid the absence of a potential trigger. The broader appeal for Gold is quite bullish as short-to-long-term daily Exponential Moving Averages (EMAs) are sloping higher.
