Gold price edges lower in Tuesday’s Asian session.
The stronger US economic data and the Fed's hawkish stance continue to underpin the yellow metal.
Investors will focus on the speech from Fed’s Cook and Bowman on Tuesday.
Gold price (XAU/USD) trades in negative territory on Tuesday despite the weaker Greenback. The stronger-than-expected US Purchasing Managers Index (PMI) released last week triggered Federal Reserve (Fed) officials to push out the timing of the first interest rate cut this year, which continues to cap the gold’s upside. However, the safe-haven flows on the back of geopolitical tensions in the Middle East and Ukraine might boost the yellow metal in the near term.
Investors will take more cues from the Fed members' speeches on Tuesday, with Lisa Cook, Michelle Bowman scheduled to speak. The crucial US economic data to be closely watched this week will be the final reading of the US Gross Domestic Product (GDP) for the first quarter (Q1) on Thursday and the Personal Consumption Expenditure (PCE) Price Index for May, which is due on Friday. Any evidence of a trend of easing inflation could prompt the expectation of Fed rate cuts later in 2024. This, in turn, might drag the Greenback lower and create a tailwind for USD-denominated Gold.
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