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GOLD PRICE BULLS REMAIN ON THE SIDELINES AMID REDUCED BETS FOR A LARGER FED RATE CUT

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  • Gold price drifted lower following the release of the crucial US CPI report on Wednesday. 
  • Diminishing odds for a 50-bps rate cut in September lifts the US bond yields and the USD.
  • The prospects for an imminent start of the Fed’s policy-easing cycle offer some support.

Gold price (XAU/USD) witnessed an intraday pullback from the vicinity of the all-time peak on Wednesday after the latest US consumer inflation figures dashed hopes for a larger interest rate cut by the Federal Reserve (Fed) in September. Apart from this, the risk-on impulse further undermined the safe-haven precious metal, which settled in the red for the first time in three days. That said, the prospects for an imminent start of the Fed's policy-easing cycle assisted the non-yielding yellow metal to find some support and bounce off the $2,500 psychological mark. 



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