Gold prices faced some selling pressure on Wednesday. The potential
for further gains in gold may be limited due to the FOMC minutes being
interpreted as more hawkish than previous releases.
The US Fed's cautious
stance on maintaining its restrictive policy for an extended period strengthens
the Greenback and adds selling pressure on gold.
Gold traders will be closely
monitoring the preliminary May readings of the US Manufacturing and Services
Purchasing Managers Index (PMI).
A weaker PMI could spark hopes for Fed rate
cuts and provide support for gold. Additionally, geopolitical tensions,
uncertainties, and persistent inflation may support the precious metal and
limit its downside in the near term.
Dr. Kamaran Qader Yaqub,
Financial Consultant at
Investment Spot company.
