June Gold futures experienced a modest rally during Tuesday's session but failed to test overhead resistance, ultimately pulling back toward the close. A broadly weaker U.S. dollar provided a structural tailwind for the metal, though elevated yields and a cautious Federal Reserve continued to offset support. Market participants are closely watching upcoming labor data, including ADP private payrolls and the BLS non-farm payrolls, which could influence the dollar's immediate trajectory. Furthermore, the CME FedWatch Tool indicates no expected rate cuts until late 2027, with the probability of a rate hike outweighing a cut in upcoming meetings. Following the most divided FOMC decision in nearly 3 decades, oil-driven inflation keeps the Fed cautious, maintaining high opportunity costs for holding gold.
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