Gold prices remained on an uptrend overall but could see some correction risks as monetary policy expectations continue to change.
Traders continued to monitor US economic data as well as the comments from the Federal Reserve governors.
Federal Reserve Chair Jerome Powell stated on Wednesday that the central bank will require more evidence of inflation moving sustainably towards the 2% target before considering interest rate cuts.
Atlanta Fed President Raphael Bostic suggested the possibility of a single cut, while San Francisco’s Mary Daly and Cleveland’s Loretta Mester reiterated their forecasts for the commencement of policy easing this year.
The latest ISM report revealing a surprise slowdown in US services growth and easing price growth for service providers supported expectations of rate cuts and gold prices while manufacturing PMI weighed on the asset. At the same time, in February, central banks continued to strengthen their gold reserves, albeit at a slower pace compared to the previous month.
Global central bank gold reserves increased by 19 tonnes, marking the 9th consecutive month of growth, which could support gold.
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