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US Spot Gold price extends the range play around 50-day SMA



Gold price (XAU/USD) continues with its struggle to gain any meaningful traction and remains confined in a familiar range around the 50-day Simple Moving Average (SMA) through the Asian session on Wednesday. Growing market conviction that the Federal Reserve (Fed) will wait until the June policy meeting before cutting interest rates helps revive the US Dollar (USD) demand and continues to act as a headwind for the non-yielding yellow metal. Apart from this, the recent risk-on rally across the global equity markets further seems to undermine the safe-haven commodity.


That said, the looming US government shutdown, along with a fresh leg down in the US Treasury bond yields, might hold back the USD bulls from placing aggressive bets and lend some support to the safe-haven Gold price. Investors might also prefer to move to the sidelines and look to the US Personal Consumption Expenditures (PCE) Price Index on Thursday for cues about the Fed's rate-cut path. This might also contribute to limiting the downside for the XAU/USD, warranting caution before confirming that the recent recovery from a multi-month low has run its course.




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