Gold price (XAU/USD) attracts some sellers for the second straight day on Wednesday and extends the previous day's rejection slide from the $3,500 psychological mark or a fresh record high. US President Donald Trump's administration officials hinted at a potential de-escalation of the ongoing tariff dispute with China and fueled optimism about a trade deal. Adding to this Trump stepped back from his threats to dismiss Federal Reserve (Fed) Chair Jerome Powell. Furthermore, Russian President Vladimir Putin indicated he is open to the prospect of direct talks with his Ukrainian counterpart Volodymyr Zelenskyy, boosting investors' confidence and undermining the safe-haven precious metal.

Meanwhile, the attempted US Dollar (USD) recovery from a multi-year low stall amid the weakening confidence in the US economy on the back of US President Donald Trump's back-and-forth tariff announcements. Adding to this, bets that the Federal Reserve (Fed) will resume its rate-cutting cycle soon act as a headwind for the Greenback and contribute to limiting the downside for the non-yielding Gold price. Hence, it will be prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out and positioning for any meaningful corrective decline. Traders now look forward to the release of the global flash PMIs for a fresh insight into the global economic health and short-term impetus.

source: Fxstreet