Gold price (XAU/USD) recovered to $2,400 despite Fed Chair Jerome Powell’s hawkish message emphasizing a longer restrictive policy stance. While this typically supports the US Dollar and Treasury yields, rising geopolitical tensions underpin Gold.
Key Factors:
- Hawkish Fed: Powell’s focus on combating persistent inflation and strong labor demand signals the potential for higher interest rates for longer.
- Geopolitical Tensions: Escalating Middle East tensions and potential US sanctions on Iran support Gold’s safe-haven appeal.
- Rising Yields: While 10-year US Treasury yields retreat slightly from a five-month high, they remain elevated, potentially limiting Gold’s bullish momentum.
Technical Analysis:
- Resilient Gold: Price action remains within Tuesday’s trading range near $2,380.
- Overbought RSI: The Relative Strength Index (RSI) cools down from extreme overbought levels but lingers in the bullish range, indicating potential for further gains.
- Key Support Levels: April 5 low ($2,268) and March 21 high ($2,223) offer critical downside support zones.
