Gold edged higher during the North American session and shot to a fresh two-week high, around the $1,834 region in the last hour. The US dollar saw some selling on Wednesday and was pressured by retreating US Treasury bond yields. This, in turn, was seen as a key factor that benefitted the dollar-denominated commodity. The upside, however, is likely to remain capped amid the risk-on impulse in the markets, which tends to undermine the safe-haven XAUUSD.
The latest US consumer inflation figures for January could impact the Fed’s policy outlook, which, in turn, will drive the USD demand and provide a fresh directional impetus to the non-yielding gold. In the meantime, traders will take cues from the US bond yields, the USD price dynamics and the broader market risk sentiment to grab some short-term opportunities around the XAUUSD amid absent relevant market-moving economic releases from the US.
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