Gold price (XAU/USD) attracts some sellers in the vicinity of the $2,950 level during the Asian session on Friday and moves away from the all-time peak touched the previous day. The intraday downtick could be attributed to some profit-taking amid slightly overbought conditions on the daily chart. The downside, however, remains cushioned in the wake of worries that US President Donald Trump's tariff plans could trigger a global trade war. This might continue to act as a tailwind for the safe-haven bullion.
Furthermore, expectations that Trump's protectionist policies would reignite inflation could further underpin the Gold price, which is seen as a hedge against rising prices. Apart from this, geopolitical risks, doubt over US consumer health, and a weaker US Dollar (USD) should contribute to limiting losses for the precious metal. Hence, any subsequent slide might still be seen as a buying opportunity. Nevertheless, the XAU/USD pair seems poised to register gains for the eighth straight week and prolong a two-month-old uptrend.
Gold price bulls have the upper hand amid persistent worries about Trump's tariff plans
The uncertainties surrounding US President Donald Trump's threatened tariffs and their impact on the global economy lifted the safe-haven Gold price to a fresh record high, near the $2,955 region on Thursday.
Trump has imposed a 25% tariff on steel and aluminum, and an additional 10% tariff on Chinese imports since taking office on January 20, and also plans to announce fresh tariffs over the next month or sooner.
Meanwhile, a softer-than-anticipated sales forecast from Walmart raised doubt over underlying economic strength amid worries that Trump's policy moves would boost inflation and undermine consumer spending.
Hopes for a peace deal between Russia and Ukraine seem to have faded in the wake of intensifying Ukrainian drone attacks on Russian Oil pumping stations, which could further act as a tailwind for the precious metal.
The US Dollar languishes near its lowest level since December 10 amid bets for more interest rate cuts by the Federal Reserve and might turn out to be another factor that could lend support to the XAU/USD pair.
Fed officials, however, remain wary of future interest rate cuts amid still-sticky inflation, which, in turn, prompts some profit-taking around the non-yielding yellow metal amid slightly overbought conditions.
St. Louis Fed President Alberto Musalem warned on Thursday that rising inflation expectations combined with the risk of stubborn stagflation could create a double challenge for the US economy.
Earlier on Thursday, Fed Board Governor Adriana Kugler said that US inflation still has some way to go to reach the central bank's 2% target and that its path toward that goal continues to be bumpy.
In contrast, Atlanta Fed president Raphael Bostic struck a more dovish tone and sees room for two more rate cuts this year, though noted that much depends on the evolving economic conditions.
Traders now look forward to the flash PMI prints for a fresh insight into the global economic health, which, in turn, should provide some impetus to the commodity heading into the weekend.
Apart from this, the US economic docket – featuring the release of Existing Home Sales data and the revised Michigan Consumer Sentiment Index – might contribute to producing short-term opportunities.
Source: Fxstreet
The Gold price (XAU/USD) edges lower to around $3,630 during the early Asian session on Friday. The precious metal retreats from a record high on some profit-taking. Nonetheless, the rising bets of th...
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...
Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last mont...
Gold weakened slightly on Thursday (September 11), but held near record highs well above $3,600, as a modest dollar recovery and profit-taking weighed on prices, while investors awaited US consumer in...
Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Th...
Gold prices continue to approach $3,650 per ounce and are poised for a fourth weekly gain. This was fueled by expectations that the Federal Reserve will cut US interest rates, as inflows into gold-backed ETFs increased. Silver also rallied,...
Hong Kong shares surged 375 points, or 1.4%, to 26,405 on Friday morning's trade, reversing losses in the prior session and hitting their highest in over four years. The rally was broad-based, tracking a global rally after Wall Street's S&P 500...
The US dollar weakened on Friday after a surge in jobless claims and a moderate rise in inflation made markets increasingly confident that the Fed would cut interest rates next week—and possibly further thereafter. The dollar index stood at 97.585,...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...