Gold Retreats Below $2,750 as Fed Signals Gradual Rate Cut Path

Gold prices have declined 1.5% to $2,735 per ounce as Federal Reserve officials dampened expectations for aggressive monetary easing in 2025. The precious metal fell from weekly highs near $2,780 after Fed Governor Bowman emphasized the need for patience on rate cuts, citing persistent inflation concerns. The US 10-year Treasury yield rose to 4.28%, increasing the opportunity cost of holding non-yielding gold. EUR/USD weakness at 1.0820 further supported dollar strength, adding pressure on gold prices. Technical indicators show gold testing support at the 20-day moving average ($2,730), with next support at $2,700. The RSI has cooled to 48 from overbought levels. Despite near-term headwinds, gold maintains its year-to-date gain of 32%. Traders should monitor Friday's US PCE inflation data, which could influence Fed rate expectations and gold's direction.