#Gold Analysis: Geopolitical Tensions Could Support Gains (29 May 2024)
Gold prices dipped on Wednesday from yesterday's highs near $2,365 an ounce. Investors continued to trim bets on Federal Reserve rate cuts this year following recent comments from officials and ahead of the key personal consumption expenditures (PCE) inflation report. Yesterday, Minneapolis Fed President Neel Kashkari said in an interview that the Fed should hold off on cutting rates until inflation improves significantly. Thus, it could even raise rates if inflation fails to come down further. In general, traders are now focusing on personal consumption expenditures data scheduled for release on Friday, the Federal Reserve's preferred measure of US inflation, which is expected to be in line with the Consumer Price Index, indicating that prices are not accelerating. At the same time, rising geopolitical risks in the Middle East continue to enhance the appeal of a safe haven. Meanwhile, the recent reports showed that the Israeli army denied striking a tent camp west of Rafah, wi