Gold recovers despite delayed bets for Fed rate cuts

Gold is extending its rebound off the $2300 psychological level!

Even so, the precious metal appears to be on the cusp of ending a 5-week winning streak.

Gold's recent rebound suggests that demand for the safe haven asset still offsets the lowered expectations for Fed rate cuts in 2024.

From a technical perspective, bullion appears to be guided upwards from a crucial support level: the 21-day simple moving average (SMA).

The latest US GDP figures have ramped up stagflation fears and may have boosted safe haven demand.

However, recent gains may prove fleeting.

Later today (Friday, April 26th) at 12:30 GMT, the US is due to release the PCE Deflators - the Federal Reserve's preferred measure of inflation.

Higher-than-expected US PCE Deflators would likely seal gold’s first weekly loss since mid-March.

On the other hand, lower-than-expected inflation data may help spot gold further trim some of its losses this week.