The post Gold flat lines below $2,400 amid mixed fundamental cues, downside remains cushioned appeared on BitcoinEthereumNews.com.

Dovish Fed expectations and geopolitical risks assist the Gold price to attract dip-buyers. Signs of stability in the equity markets might cap the metal amid a modest USD strength. Bears need to wait for a sustained break below the 50-day SMA before placing fresh bets. Gold price (XAU/USD) attracts some dip-buyers near the $2,379-2,378 region on Wednesday and climbs to a fresh daily peak heading into the European session. The incoming softer US economic data suggested that the world’s largest economy was slowing faster than initially expected. This, in turn, fueled speculations about bigger interest rate cuts by the Federal Reserve (Fed), which acts as a tailwind for the non-yielding yellow metal.  Apart from this, concerns about an economic slowdown in China and the risk of a further escalation of geopolitical tensions in the Middle East lend additional support to the safe-haven Gold price. That said, a goodish pickup in the US Dollar (USD) demand, bolstered by a further recovery in the US Treasury bond yields, along with a generally positive risk tone, might keep a lid on any meaningful appreciating move for the XAU/USD.  Daily Digest Market Movers: Gold price bulls remain on the sidelines amid modest USD strength, positive risk tone A global sell-off in the equity markets – triggered by fears of the US tipping into recession – seems to have eased amid some bargain buying and exert some pressure on the safe-haven Gold price on Wednesday. The US Treasury bond yields build on the overnight advance, which was their biggest rise since early June – and lend support to the US Dollar, which is further seen undermining the non-yielding yellow metal. Government data released on Tuesday showed that the US trade deficit fell by 2.5%, to $73.1 billion in June from $75.0 billion in May owing…

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Filed under: News - @ August 7, 2024 8:20 am