Gold price (XAU/USD) recovers some losses while broader safe-haven demand remains diminished amid no further escalation in geopolitical tensions. A recovery in the US Dollar and long-term bond yields would continue to weigh on the precious metal. Gold price weakens despite investors seeing an end to the Federal Reserve’s (Fed) rate-tightening campaign, due to gradually easing consumer inflation and higher Treasury yields, which have tightened financial conditions significantly. Commentary from Federal Reserve Chairman Jerome Powell on Wednesday could drive further action in the US Dollar and bond markets. Powell may give an idea of whether investors should expect more interest rate hikes this year to ensure a return of inflation to the Fed’s 2% target.

Fed Governor Lisa Cook said that the current interest rate policy is sufficiently restrictive to achieve price stability on Monday; Fed’s Kashkari, on the other hand, reportedly said the opposite in a Wall Street Journal article published on the same day. Fed Kashkari spoke again on Tuesday that if inflation starts to tick back up, that would tell me Fed’s job is not yet done.” He added that the labor market is robust and is not seeing any meaningful evidence that the economy is weakening. Gold price finds an intermediate support near $1,960.00 after a sharp sell-off. Earlier, the yellow metal plunged after several failed attempts to stabilize above the psychological resistance of $2,000. The precious metal is exposed to the 20-day Exponential Moving Average (EMA), which trades at around $1,960.00. The broader trend is still bullish as the 200-day EMA is sloping higher. Momentum oscillators demonstrate that the bullish momentum has faded.