Commodities
Gold Prices Retrace Amid Hawkish Fed Expectations
Gold prices have pulled back to around $4,050 after a sharp 2% correction from two-week highs of $4,166. The US Dollar has retreated amid concerns over Trump's tariffs and profit-taking.
The gold price remains under pressure with the Bear Cross confirmed on the daily chart. Momentum has turned downbeat again, with the Relative Strength Index (14) around 44 in neutral-to-soft territory.
The broader macro backdrop is not supportive of a sustained build-up in bullion positions, according to TD Securities. Geopolitical tensions are feeding into this dynamic, and the Middle East war-driven oil price increases will continue to increase the probability of a Fed rate hike.