Spot Gold extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.
The yellow metal extended the overnight correction, largely on the back of a solid rebound staged by the US against its main rivals. The greenback was helped by the NY Fed’s clarification on President Williams’ dovish comments that poured cold water on aggressive Fed rate cut in July, weighing negatively on the non-yielding gold.
Moreover, the latest remarks from the St. Louis Fed President Bullard, citing that a 25 bps Fed rate cut this month would be appropriate, strengthened the broad USD recovery. However, the downside in the safe-haven remains restricted by escalating US-Iran geopolitical tensions and subdued trading seen around the Treasury yields.
