Gold struggles to capitalize on its modest intraday gains, though the downside seems limited.
Reduced bets for a December Fed rate cut act as a headwind for the non-yielding yellow metal.
Economic concerns weigh on the USD and could support XAU/USD amid the risk-off impulse.
Gold refreshes daily low as reduced Fed rate cut bets offset weaker USD, risk-off mood
Gold (XAU/USD) attracts some sellers following an intraday move higher to levels beyond the $4,200 mark and drops to a fresh daily low during the early part of the European session on Friday. A growing number of Federal Reserve (Fed) policymakers signaled caution on further easing amid the lack of economic data, prompting traders to trim their bets for another rate cut in December. This, in turn, is seen as a key factor acting as a headwind for the non-yielding yellow metal.
Investors, however, seem convinced that weakening economic momentum on the back of a prolonged US government shutdown could allow the Fed to ease monetary policy further. This, in turn, keeps the US Dollar (USD) depressed near a two-week low, touched on Thursday, and could support the Gold price. Apart from this, a generally weaker risk tone might contribute to limiting the downside for the safe-haven precious metal, warranting some caution for bearish traders.
Source: Fxstreet
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...