Gold retreats as Fed’s hawkish comments weigh; market awaits US GDP and inflation data

Gold prices fell to a one-week low on Wednesday, driven down by recent hawkish remarks from Fed policymakers.

The US central bank intends to tackle inflation by maintaining the policy rate unchanged for the foreseeable future, but has also emphasized its readiness to tighten policy further if necessary.

Investor sentiment turned cautious following these statements, although a broader bullish outlook is anticipated as long as the metal’s price holds above critical support levels at $2300 and $2280 (psychological support and the lower boundary of the recent consolidation range below the new record high).

Daily technical indicators present a mixed picture, with 14-day momentum declining into negative territory, conflicting moving averages, and stochastic indicators entering oversold conditions without providing a clear directional signal.

Market attention now turns to the release of US inflation data (PCE) on Friday, which will offer insights into the timing of the Fed’s future policy adjustments, following multiple postponements of the anticipated first rate cut.

Gold prices are expected to remain in a prolonged consolidation phase until broader bullish sentiment reasserts itself, driven by persistent global economic uncertainties and geopolitical tensions that support safe-haven demand.

Res: 2325; 2342; 2368; 2387
Sup: 2300; 2277; 2272; 2249