Gold price trades with negative bias below $2,900 amid some USD dip-buying
The post Gold price trades with negative bias below $2,900 amid some USD dip-buying appeared on BitcoinEthereumNews.com.
Gold price drifts lower on Tuesday amid bets that the Fed could keep rates higher for longer. The emergence of some USD buying contributes to driving flows away from the XAU/USD pair. Tariffs jitters and global trade war fears could lend support to the safe-haven precious metal. Gold price (XAU/USD) struggles to capitalize on the previous day’s positive move closer to the $2,900 mark and attracts some sellers during the Asian session on Tuesday, stalling its recovery from a three-week trough touched last Friday. Expectations that US President Donald Trump’s trade tariffs would reignite inflation and force the Federal Reserve (Fed) to keep rates higher for longer undermine the non-yielding yellow metal. Apart from this, the emergence of some US Dollar (USD) buying turns out to be another factor weighing on the bullion. Meanwhile, worries about the potential economic fallout from Trump’s protectionist policies, which might trigger a global trade war, temper investors’ appetite for riskier assets. This is evident from a generally weaker tone around the equity markets and could offer some support to the safe-haven Gold price. Apart from this, geopolitical risks might contribute to limiting any further losses for the bullion. Traders might also refrain from placing aggressive bets and opt to wait for the release of the US Nonfarm Payrolls (NFP) report on Friday. Daily Digest Market Movers: Gold price struggles to lure buyers despite supporting factors Investors remain worried that US President Donald Trump’s trade tariffs would increase price pressures and allow the Federal Reserve to stick to its hawkish stance, prompting some selling around the Gold price on Tuesday. Trump’s tariffs on Mexico and Canada are taking effect this Tuesday, along with a new 10% levy on Chinese goods. Trump also said that reciprocal tariffs would take effect on April 2 on countries that…
Filed under: News - @ March 4, 2025 5:25 am