Technical analysis by MarkEliza about Symbol PAXG: Sell recommendation (2/12/2024)

Gold price (XAU/USD) extends its sideways consolidative price move through the first half of the European session on Monday and remains well within the striking distance of the monthly low touched last week. Expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, bolstered by robust US macro data and hawkish rhetoric from several FOMC members, turn out to be a key factor acting as a headwind for the non-yielding yellow metal. Apart from this, easing fears about a further escalation of geopolitical tensions in the Middle East contributes to capping the upside for the safe-haven commodity. Investors, meanwhile, remain uncertain about the likely timing and pace of interest rate cuts by the Fed, which, along with a modest downtick in the US Treasury bond yields, lend some support to the Gold prices. Traders further opt to wait on the sidelines ahead of the US consumer inflation figures, due on Tuesday, which could provide cues about the Fed's rate-cut path and provide a fresh impetus to the XAU/USD. In the meantime, speeches by influential FOMC members will drive the USD demand and produce short-term trading opportunities around the precious metal in the absence of any relevant economic data from the US.