Gold prices are looking for direction due to the Fed's hawkish policy

[FXOcrypto]

The Fed's uncertainty about when it will cut interest rates seems to be triggering gold price movements that are looking for direction.
Gold prices tend to move slightly above the $2300 support. Some points that are currently of concern to the market include:

• US dollar recovers after Fed Kashkari's hawkish guidance on interest rates.
• Tensions in the Middle East worsened due to Israel's invasion of Rafah.

In yesterday's trading, it appeared that the USD tended to strengthen, the hawkish guidance of the President of the Minneapolis Fed, Neel Kashkari, was one of the factors for the USD to strengthen. He wants positive inflation readings that can build confidence that inflation will meet the 2% target. He supports maintaining fixed interest rates throughout the year as progress in the disinflation process has stalled due to the strength of the housing market.

While tensions in the Middle East show no signs of a ceasefire, Israel has attacked Rafah where millions of Palestinian refugees are housed. Heating global geopolitics could provide support for gold as a safe-haven.

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[Riberet19]

I guess this is all due to the sudden strength of the dollar, other assets like Bitcoin have also been falling in the last 24-48 hours, anyway gold has had a good rally, maybe a bit of pullback will suit the asset.

 

[FXOcrypto]

Yes, gold has jumped now at around $2366, and several global central banks have cut interest rates, apparently having an impact on increasing gold prices, but the challenge is still from the Fed which is still maintaining high interest rates. It is hoped that China's recovering economic data will bring demand for gold to increase.

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