Gold price tumbles on Powell’s hawkish guidance, waning Middle East tensions

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• Gold price struggles for a sustained recovery as Fed Powell endorsed tightening policy further.
• Middle East tensions ease as investors see the war between Israel and Palestine remaining contained.
• Next week, the release of the US inflation data will guide further action in the US Dollar and bond markets.

Gold price (XAU/USD) is highly likely to deliver a second straight bearish weekly closing as several Federal Reserve (Fed) policymakers voice support for further tightening. Federal Reserve Chairman Jerome Powell is not confident that the current interest rate policy is sufficiently restrictive to ensure the return of inflation to 2% in a timely manner.