Gold relinquished its footing near $2,420 per ounce on Tuesday, descending from recent zeniths, as market participants mulled over the latest discourse from Federal Reserve dignitaries.
Despite the moderation in US consumer price inflation observed last week, Fed authorities remain reticent to declare that inflation is steering towards the central bank’s envisaged target, with numerous officials advocating for a sustained prudent approach in policy.
Federal Reserve Vice Chair Michael Barr underscored the necessity for additional time to assess the efficacy of restrictive measures.
Further statements from Fed representatives are anticipated throughout the week.
Concurrently, robust safe-haven demand persisted in underpinning the precious metal, fueled by apprehensions of a potential escalation in geopolitical turmoil following the demise of Iranian President Ebrahim Raisi.
Moreover, substantial acquisitions by central banks, notably by China, aimed at diminishing dependency on the US dollar and bolstered by their property market stimulation initiatives, further reinforced the upward momentum.