The post Gold retakes $4,200 amid weaker USD and risk-off impulse appeared on BitcoinEthereumNews.com.

Gold (XAU/USD) attracts some dip-buyers during the Asian session on Friday and climbs back above the $4,200 mark, closer to an over three-week high that was touched the previous day. Investors seem concerned about weakening economic momentum on the back of a prolonged US government shutdown, which could allow the US Federal Reserve (Fed) to cut interest rates further. This keeps the US Dollar (USD) depressed near a two-week low and turns out to be a key factor acting as a tailwind for the precious metal. Furthermore, a turnaround in the global risk sentiment is evident from a generally weaker tone around the equity markets and underpins the safe-haven Gold. Meanwhile, a growing number of Federal Reserve 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, might keep a lid on the non-yielding yellow metal. Nevertheless, the fundamental backdrop seems tilted firmly in favor of the XAU/USD bulls. Daily Digest Market Movers: Gold draws support from sustained USD selling and reviving safe-haven demand The reopening of the US government shifts market focus back to the deteriorating fiscal outlook. Moreover, market participants now seem convinced that the delayed US macro data will show some weakness in the economy and back the case for further policy easing by the US Federal Reserve. Economists estimate that the prolonged government closure might have already shaved approximately 1.5 to 2.0% off quarterly GDP growth. This comes amid signs of deteriorating labor market conditions and fails to assist the US Dollar to register any recovery from a two-week trough. Meanwhile, a senior White House official said that key economic reports for October – employment details and inflation data – may not be released at all. This prompted several…

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Filed under: News - @ November 14, 2025 5:30 am