Gold price drifts lower amid the upbeat market mood, bullish potential seems intact
The post Gold price drifts lower amid the upbeat market mood, bullish potential seems intact appeared on BitcoinEthereumNews.com.
Gold price attracts some sellers for the second straight day, though the downside seems limited. The optimism over China’s stimulus measures drives some haven flows away from the XAU/USD. Geopolitical risks and bets for a more aggressive policy easing by the Fed could limit losses for the precious metal. Gold price (XAU/USD) kicks off the new week on a softer note, albeit it remains confined in a multi-day-old range and within striking distance of the all-time peak touched last Thursday. Israel intensified the war at its border with Lebanon, raising the risk of a further escalation of geopolitical tensions in the Middle East. Apart from this, news that Japan’s new Prime Minister Shigeru Ishiba is planning a general election for October 27, along with the US political uncertainty, should lend support to the safe-haven precious metal. Furthermore, dovish Federal Reserve (Fed) expectations keep the US Dollar (USD) bulls on the defensive, near the lowest level since July 2023 touched on Friday, and might turn out to be another factor acting as a tailwind for the non-yielding Gold price. That said, the risk-on environment, bolstered by additional stimulus announced by China over the weekend, is seen exerting some pressure on the XAU/USD for the second straight day. Nevertheless, the fundamental backdrop supports prospects for the emergence of some dip-buying. Daily Digest Market Movers: Gold price is undermined by the risk-on mood, Fed rate cut bets and geopolitics could limit deeper losses Israel expanded its confrontation with Iran’s allies – Houthis in Yemen and Hezbollah in Lebanon – and launched aggressive aerial assaults on Sunday, fueling fears about an all-out war in the Middle East. According to a statement by the Israeli Defence Forces dozens of aircraft, including fighter jets, power plants and a seaport at the Ras Issa and Hodeidah ports…
Filed under: News - @ September 30, 2024 2:58 am