Gold price tumbled for the second consecutive day as traders erased Bullion's advance on Tuesday, which pushed its gains past the $3,400 figure. The announcement of a US-UK trade deal boosted the US Dollar (USD) to the detriment of XAU/USD, which trades at $ 3,311, down over 1.60%.
An upbeat sentiment is taking its toll on Gold prices, which have declined by almost 4% over the last two days. The announcement of a trade deal between the US and the UK, made by President Donald Trump and UK Prime Minister Keir Starmer, has improved the market mood, as traders seem confident that the US could reach more agreements. Meanwhile, all eyes are on Saturday's meeting between the US and Chinese delegations in Switzerland to discuss tariffs.
The news alleviated concerns among investors seeking risk and drove US equity markets and the US Dollar higher, with both being bearish for the Gold market.
The US Dollar Index (DXY), which tracks the buck's value against a basket of six currencies, hurdled the 100.00 figure and is up 0.85% at 100.71, a headwind for the yellow metal.
Data-wise, the US economic docket revealed that the labor market remains solid, a relief for the Federal Reserve (Fed), which held rates unchanged on Wednesday. At the same time, Fed Chair Jerome Powell said he is in no rush to reduce interest rates.
On Friday, a slew of Fed officials would grab the headlines following the blackout period ahead of the May 7 monetary policy meeting.
Source: Fxstreet
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