Gold prices remained under pressure on Wednesday, trading below $1,970 an ounce. This decline comes after two consecutive sessions of losses, as investors remain cautious ahead of US Federal Reserve Chair Jerome Powell’s speech later today.
In recent comments, Minneapolis Federal Reserve President Neel Kashkari indicated that it is too early to declare victory over inflation. Similarly, Fed Governor Michelle Bowman reiterated her stance that the central bank will likely need to implement further interest rate hikes.
Additionally, gold demand has been impacted by a diminishing geopolitical risk premium related to the Israel-Hamas war. Israeli authorities have announced temporary pauses in fighting to address humanitarian needs, easing concerns over the conflict’s potential impact on the region.