Gold has flirted with three-week lows near 1.6207 earlier in the day. The Fed’s hawkish expectations after US inflation data came out higher than expected last month will continue to weigh on the yellow metal, TD Securities strategists report.
Gold positions continue to unravel
“Gold positions continue to unravel, with ETF holdings down more than 400,000 ounces in the latest session, the biggest one-day drop since March last year.”
“The Fed’s rhetoric continues to push the idea that we are headed for a persistently aggressive central banking regime. Against this backdrop, gold prices are unlikely to rise on deteriorating growth prospects until the Fed does so.” progress in the war against inflation.”
“Physical demand for bullion has remained high, but seasonal considerations suggest this tailwind could moderate soon after the Indian festive season.”
Source: Fx Street
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