Gold price (XAU/USD) struggles to capitalize on modest intraday gains on Friday and remains below the $3,260-3,265 support breakpoint, now turned resistance, through the Asian session. The optimism over a possible US-China trade deal remains supportive of the upbeat market mood and acts as a headwind for the safe-haven precious metal. However, bets for more aggressive policy easing by the Federal Reserve (Fed) cap the recent US Dollar (USD) move up to a multi-week high and lend some support to the commodity.
Traders, however, seem reluctant to place aggressive directional bets and opt to wait for the release of the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report. The crucial data could provide a fresh insight into the Fed's policy outlook, which, in turn, will influence the near-term USD price dynamics and provide some meaningful impetus to the non-yielding Gold price. Nevertheless, the XAU/USD remains on track to register its weekly performance in more than two months.
Gold price bulls seem reluctant amid US-China trade deal hopes, ahead of US NFP report
China's Commerce Ministry said on Friday that the US has recently, through relevant channels, actively conveyed messages to engage in talks on tariff issues and the country is assessing the proposal to start negotiations. This adds to the optimism over a possible easing of the tit-for-tat tariff war between the world's two largest economies.
Moreover, hopes for tariff deals between the US and its trading partners lifted the US Dollar to a three-week high and dragged the Gold price to the $3,200 neighborhood on Thursday. The USD bulls, however, turn cautious amid bets for more aggressive policy easing by the Federal Reserve and ahead of the US Nonfarm Payrolls report.
Source: Fxstreet
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