Gold prices rose by more than 0.30% despite facing pressure from high US Treasury yields. The XAU/USD traders are keeping a close eye on the release of US core PCE inflation data as they navigate through the market fluctuations.
The Gold price witnessed a modest increase late in the North American session, with gains of around 0.15%. However, the high US Treasury bond yields made the non-yielding metal less attractive, resulting in the Greenback erasing its previous losses. The XAU/USD is currently trading at $2,357, above its opening price by 0.28%.
The Wall Street market was down, as the 10-year Treasury note yield climbed sharply to its highest level since the beginning of May. This surge in real yields, which usually moves inversely to Gold prices, acted as a hindrance to the yellow metal’s ascent.
Federal Reserve officials, including Governor Michelle Bowman, delivered hawkish remarks, slightly tempering Gold’s rise. The upcoming release of April’s Personal Consumption Expenditures (PCE) Price Index is anticipated, with the core figure expected to rise by 2.8% YoY.
The Gold price remains firm, although traders are cautious as buyers show signs of losing momentum. The technical analysis suggests that if XAU/USD fails to hold above $2,350, it could signal a downward trend, with key support levels at $2,303 and $2,277. On the flip side, if the price remains above $2,350, further gains towards $2,400, $2,450, and $2,500 could be expected.
Overall, despite the challenges posed by high Treasury yields and hawkish Fed statements, Gold prices continue to show resilience in the market. Traders await the upcoming economic data release to gauge the future direction of the precious metal.
