Gold’s price remains in a tight range, with little change seen overnight in the Asian session.
The yellow metal continues to hold above $2,300 with spot gold (XAU/USD) trading at $2,317.14 by 07:10 BST.
Gold has come under pressure due to waning safe-haven demand, coupled with the dollar’s renewed strength following diminished expectations of an early rate cut by the Federal Reserve.
On the geopolitical front, expectations of an Israel-Hamas ceasefire remain on the cards, further limiting safe-haven demand.
The biggest pressure on gold remains the prospect of higher for longer U.S. interest rates. Fed officials continue to warn markets not to price in cuts any time soon.
Gold prices have seen little support since reaching an all-time high of $2,400 in April after Federal Reserve officials warned inflation remains a concern.
Despite lingering hope for a September rate cut, markets now await addresses from Fed officials scheduled for Thursday and Friday.
Today’s data releases are limited to U.S. unemployment claims. Next week brings key consumer price index data for April, which will likely offer clearer signals on the direction of interest rates.
High for longer rates bode poorly for gold, given that they push up the opportunity cost of investing in the yellow metal.
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