GOLD Faces Downside Pressure Amidst Shifting Fed Expectations

GOLD Faces Downside Pressure Amidst Shifting Fed Expectations

The XAU/USD pair is currently testing below the $1,950 price level, encountering downward pressure as markets recalibrate their outlook on the Federal Reserve's stance towards interest rates.

While US Treasury yields remain elevated, they have moderated from recent peaks, alleviating a significant bullish driver for Spot Gold prices.

Last week witnessed a surge in expectations for the Fed to embark on a rate-cutting cycle, but this sentiment has been tempered as Fed officials downplay the likelihood of imminent rate cuts.

As a result, Gold may sustain its bearish momentum, with a projected target of 1938 and the potential for continued downside pressure in the near term.

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Short-Term Setup | Our preference:

Short positions below 1959.45 with targets at 1938.00 & 1933.00 in extension.