Gold Price sits near multi-month top ahead of Powell’s speech

Gold price holds steady near an eight-month high touched on Monday, lacks follow-through.

Rebounding US Treasury bond yields revives the US Dollar demand and acts as a headwind.

A softer risk tone lends some support as traders now keenly await Fed Chair Powell’s speech.

Gold price extends its consolidative price move for the second successive day on Tuesday and holds steady near an eight-month high touched the previous day. The XAU/USD is currently placed just below the $1,880 level as traders keenly await Federal Reserve (Fed) Chair Jerome Powell’s speech for a fresh impetus.

In its latest report, the World Gold Council (WGC) explained that “market consensus of a mild recession appears to be playing out, but with a nod to a more severe downturn could continue to be gold positive.”

Gold price also remains underpinned by expectations that global gold-backed exchange-traded funds (ETFs) will see a turnaround this year after witnessing outflows of $3 billion last year. At the end of December 2022, global gold ETF assets under management were at $203 billion, which amounts to 3,473 tons, the WGC said in its report published Monday.

Gold price is awaiting a fresh catalyst to earn acceptance above the multi-month peak of $1,880. The next stop for gold bulls is seen at the $1,900 threshold, above which doors will open toward May 2022 high at $1,910.