■ Gold retreats for third consecutive session as Fed policy outlook shifts

■ Resilient US inflation data fuels 'higher-for-longer' rate narrative

■ Technical indicators suggest critical support zone at $2,What will a Tether be worth in 10 years?145-2,144

The precious metal market continues its downward trajectory as XAU/USD slides below $2,050 during Asian trading hours, marking its weakest performance in seven sessions. Recent economic indicators from the United States have prompted market participants to reassess their projections regarding the Federal Reserve's monetary policy timeline. The persistence of inflationary pressures appears to be reshaping expectations about the central bank's willingness to implement rate reductions in the near term.

Market dynamics reveal an interesting dichotomy - while elevated Treasury yields strengthen the greenback's position, creating headwinds for gold valuations, the probability of June rate adjustments still maintains considerable market pricing. This delicate balance, combined with ongoing geopolitical tensions in Eastern Europe and the Middle East, establishes competing forces that may prevent more severe declines in the safe-haven asset's valuation. Prudent investors appear to be adopting a wait-and-see approach pending clearer signals from this week's Federal Open Market Committee gathering.

Market Drivers: Inflation Persistence vs. Geopolitical Uncertainty

Recent economic data releases have painted a nuanced picture of the US economic landscape. The University of Michigan's latest survey data indicates stable inflation expectations among consumers, with both short-term and five-year projections remaining essentially unchanged. This development follows earlier reports that suggested price pressures might be more entrenched than previously anticipated, potentially requiring monetary policymakers to maintain restrictive measures for an extended duration.

Analysts note that current market pricing, as reflected in the CME FedWatch Tool, continues to assign approximately 60% probability to a June rate adjustment scenario. This expectation appears to be tempering more aggressive dollar positioning, thereby creating a floor under gold prices. Meanwhile, escalating geopolitical developments, including intensified Ukrainian drone operations against Russian energy infrastructure and potential Israeli military operations in Gaza, contribute to the precious metal's traditional role as a portfolio hedge against uncertainty.

Technical Perspective: Critical Juncture for Gold Bulls

Chart analysts identify several important levels that could determine the metal's near-term trajectory. The $2,145-2,144 zone emerges as potentially significant support, with a decisive break below potentially opening the door for tests of subsequent barriers near $2,128. More substantial declines could see the yellow metal approach psychological support at the $2,100 handle, which historically has served as robust foundation during previous pullbacks.

Conversely, bullish scenarios would require convincing moves above the $2,175-2,176 resistance cluster. Such development could reignite upward momentum toward recent record highs around $2,195. A sustained breakout beyond the psychologically important $2,200 threshold would likely confirm resumption of the broader uptrend that characterized early March trading activity.