Gold stands tall near record high as US PCE data reaffirms June Fed rate cut bets
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Gold price (XAU/USD) enters a bullish consolidation phase during the early European session and oscillates in a narrow band around the $2,260-$2,265 region, or a fresh record high touched this Monday. Investors now seem convinced that the Federal Reserve (Fed) will start cutting in June and the bets were reaffirmed by the US Personal Consumption Expenditures (PCE) on Friday. This, along with geopolitical risks stemming from the protracted Russia-Ukraine war and the recent conflicts in the Middle East, lend additional support to the safe-haven precious metal. Data released on Sunday showed that China's manufacturing activity expanded for the first time in six months in March and boosted investors' confidence. The risk-on mood and a modest USD uptick do little to hinder the strong move up. The overbought RSI on the daily chart warrants some caution for aggressive bulls.
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