The post Gold price holds steady around $2,600; upside potential seems limited appeared on BitcoinEthereumNews.com.

Gold price attracts some haven flows amid the looming risk of a US government shutdown. The global flight to safety-led pullback in the US bond yields further benefits the XAU/USD. The Fed’s hawkish stance acts as a tailwind for the USD and should cap any further upside. Gold price (XAU/USD) attracts some dip-buyers following the previous day’s good two-way price moves and climbs back to the $2,600 mark during the Asian session on Friday. Against the backdrop of persistent geopolitical risks, trade war fears and the Federal Reserve’s (Fed) hawkish shift, the threat of a partial US government shutdown ahead of the Friday night deadline drives some haven flows towards the precious metal.  The flight to safety leads to a modest pullback in the US Treasury bond yields, which keeps a lid on the recent US Dollar (USD) rally to a two-year top and turns out to be another factor lending support to the commodity. That said, the Federal Reserve’s (Fed) hawkish signal that it would slow the pace of rate cuts in 2025 should act as a tailwind for the US bond yields and the USD, which, in turn, caps the non-yielding yellow metal.  Gold price draws support from haven flows; bulls seem non-committed amid the Fed’s hawkish shift The US House of Representatives on Thursday failed to pass A spending bill to fund the government, raising the risk of a government shutdown at the end of the day on Friday. This comes on top of persistent geopolitical risks and concerns about US President-elect Donald Trump’s tariff plans, which, in turn, drive some haven flows towards the Gold price.  The US Treasury bond yields retreat from a multi-month top, capping the post-FOMC blowout US Dollar rally to a two-year top and lending additional support to the commodity.  The US…

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Filed under: News - @ December 20, 2024 4:23 am