Gold resumes corrective downside
Gold stalls its recovery momentum and returns to the red below $4,100 in European trading on Wednesday.
The rebound in Gold faces headwinds from a renewed buying interest seen in the US Dollar amid broad risk aversion. Easing US-China trade tensions also aids the USD's uptick, weighing on Gold once again.
Gold gains ground as US Dollar weakens
The US government shutdown has entered its fourth week as the Senate on Monday failed for the 11th time to advance a House-passed measure to fund the government and end the ongoing shutdown. The 50-43 vote fell mostly along party lines.
US President Donald Trump last week threatened a new 100% tariff on China. He softens his stance over the weekend, saying that high tariffs on China are unsustainable and expressing willingness for smoother relations with China.
Trump late Tuesday predicted an upcoming meeting with his Chinese President Xi Jinping would yield a "good deal" on trade. However, he also conceded that the highly anticipated talks may not happen.
US Treasury Secretary Scott Bessent is set to meet with his Chinese counterparts to discuss a de-escalation of trade tensions ahead of the U.S.-China trade talks.
Trump said late Tuesday that he did not want a "wasted meeting" after a plan to have face-to-face talks with his Russian counterpart, Vladimir Putin, about the war in Ukraine was put on hold, per the BBC.
Traders are currently pricing in nearly a 99% possibility that the US central bank will cut interest rates again next week, followed by another reduction in December.
Source: Fxstreet
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