Gold price trades with modest losses, downside seems limited amid trade war fears
The post Gold price trades with modest losses, downside seems limited amid trade war fears appeared on BitcoinEthereumNews.com.
Gold price attracts some sellers as rebounding US bond yields help revive the USD demand. Trade war jitters and geopolitical tensions could help limit losses for the safe-haven XAU/USD. Thin trading volumes on the back of a US holiday warrant some caution for aggressive traders. Gold price (XAU/USD) extends the previous day’s retracement slide from the $2,658 region and drifts lower during the Asian session on Thursday. Wednesday’s US macro data dump pointed to a still resilient US economy and stalled progress on inflation. This suggests that the Federal Reserve (Fed) might be cautious about further rate cuts and triggers a modest bounce in the US Treasury bond yields, which helps revive the US Dollar (USD) demand and is seen undermining the non-yielding yellow metal. The markets, however, are still pricing in a greater chance that the US central bank will lower borrowing costs by 25 basis points (bps) in December. Furthermore, the US President-elect’s threatened tariffs fueled concerns about a renewed trade war between the world’s largest economies and could undermine global economic growth. This, along with persistent geopolitical risks stemming from the protracted Russia-Ukraine war, assists the safe-haven Gold price to hold above the $2,600 mark. Gold price drifts lower amid a fresh leg up in the US bond yields and reviving USD demand The US Bureau of Economic Analysis (BEA) reported on Wednesday that the Personal Consumption Expenditures (PCE) Price Index rose to 2.3% on a yearly basis in October from 2.1% in the previous month. Additional details of the report revealed that the core PCE Price Index, which excludes volatile food and energy prices, rose 0.3% on a monthly basis and edged higher from 2.7% in September to 2.8% last month. Separately, data published by the US Commerce Department showed that the world’s largest economy expanded…
Filed under: News - @ November 28, 2024 4:21 am