Gold price (XAU/USD) struggles for a firm footing as investors remain worried about guidance on interest rates ahead of remarks from Federal Reserve (Fed) Chair Jerome Powell’s speech on Wednesday. The precious metal remains under pressure as Fed policymakers have supported further policy-tightening in their recent statements, emphasizing that the battle against stubborn inflation is far from over. Fed policymakers Michelle Bowman and Neel Kashkari delivered hawkish guidance on interest rates on Tuesday, citing worries about inflation remaining persistent due to the resilience of the US economy. On the contrary, Chicago Fed President Austan Goolsbee remained confident about inflation easing, adding that discussions over how far interest rates should be hiked should move towards and how long interest rates should remain high.

Gold price turns sideways after searching an interim support below $1,960.00 as investors await Powell’s speech for further action. The precious metal oscillates inside Tuesday’s trading range but a range extension is widely anticipated after Powell’s guidance by the Fed in its December monetary policy meeting. On a daily time frame, the yellow metal has found support near the 20-day Exponential Moving Average (EMA) after correcting from above $2,000. Momentum oscillators indicate that the bullish momentum has faded.