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Gold price attracts some dip-buyers and stalls its decline from over a one-week top set on Monday. Geopolitical risks drive some haven flows, though a bullish USD might cap gains for the commodity. Signs of a slowdown in China – the biggest bullion consumer – could further weigh on the XAU/USD. Gold price (XAU/USD) witnessed an intraday pullback from over a one-week high touched on Monday and finally settled in the red, snapping a two-day winning streak amid broad-based US Dollar (USD) strength. Investors have priced out the possibility of another oversized interest rate cut by the Federal Reserve (Fed) in November. This kept the US Treasury bond yields elevated, which pushed the buck to over a two-month top and drove flows away from the non-yielding yellow metal. Adding to this, the disappointment over China’s fiscal stimulus and weak inflation figures released over the weekend did little to evoke investors’ confidence. This turned out to be another factor that undermined the Gold price and contributed to the decline. That said, geopolitical risks stemming from the ongoing conflicts in the Middle East assisted the safe-haven precious metal to stall its intraday slide and hold steady above the $2,640 level during the Asian session on Tuesday.  Daily Digest Market Movers: Gold price draws support from geopolitical risks, smaller Fed rate cut bets to cap gains The US Dollar shot to its highest level since August 8 on Monday amid growing acceptance of a less aggressive policy easing by the Federal Reserve and bets for a regular 25 basis points interest rate cut in November.  Minneapolis Fed President Neel Kashkari said on Monday that the monetary policy is still restrictive and suggested that further modest interest rate cuts could be appropriate as the job market remains strong. Fed Governor Christopher Waller noted that…

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Filed under: News - @ October 15, 2024 3:19 am