Gold advances with risk appetite returning as geopolitical fears ease.
Hopes that the Fed might hint towards monetary easing on Wednesday keep US Treasury yields near mid-term lows.
XAU/USD needs to break the $2,400 resistance to cancel the broader bearish structure.
Gold price (XAU/USD) found buyers after a moderate pullback on Monday. The precious metal has been going through a mild recovery during Tuesday’s Asian session that has continued in the European morning.
News reporting that Israel is willing to avoid an all-out war in the Middle East has eased geopolitical concerns, allowing the safe-haven US Dollar (USD) to trim some gains.
Investors’ focus is now on the Federal Reserve’s (Fed) monetary policy decision, due on Wednesday. The bank will highly likely leave interest rates unchanged, but the attention will be on the ensuing press release by Fed Chair Jerome Powell. With price pressures on a disinflationary trend and the labour market finally showing signs of exhaustion, Powell suggesting that the easing cycle might start before December. That would harm the US Dollar and support precious metals.
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