Gold prices remained stable below $2,650, with investors exercising caution ahead of the release of key US PMI data. The metal has faced a period of consolidation as traders assess the economic outlook and its potential impact on the Federal Reserve’s monetary policy trajectory.
The upcoming PMI report is expected to shed light on economic activity, influencing the dollar and Treasury yields, which have been pivotal in guiding gold’s price action. A stronger-than-expected reading could bolster the greenback, placing downward pressure on gold, while weaker data might reignite demand for the safe-haven asset.
Market participants are also factoring in broader concerns, such as geopolitical risks and global economic uncertainties, which continue to underpin gold’s appeal as a hedge. However, without fresh catalysts, the XAU/USD pair remains range-bound as the market awaits clearer signals.
