Gold retreats from six-week high amid positive risk tone
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Gold (XAU/USD) attracts some sellers during the Asian session on Tuesday and moves away from its highest level since October 20, around the $4,264-4,265 region, touched the previous day. A generally positive tone around the equity markets undermines demand for traditional safe-haven assets and exerts some pressure on the precious metal. The commodity, however, shows some resilience below the $4,200 mark and recovers slightly from the daily low, warranting some caution for bearish trades and before positioning for a deeper corrective slide. The growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs again fails to assist the US Dollar (USD) to capitalize on the overnight modest bounce from a two-week low. This, in turn, is seen as a key factor that continues to act as a tailwind for the non-yielding Gold. Traders also seem reluctant to place aggressive bets and opt to wait for this week’s important US macro releases, including the US Personal Consumption Expenditure (PCE) Price Index, for more cues about the Fed’s rate-cut path and placing fresh directional bets. Daily Digest Market Movers: Gold bulls move to the sidelines amid receding safe-haven demand Asian equity markets begin the day on a positive note after the previous day’s selloff, undermining demand for the traditional safe-haven Gold on Tuesday. The commodity, however, reverses an Asian session dip to sub-$4,200 levels amid dovish Federal Reserve expectations and the bearish sentiment surrounding the US Dollar. Traders ramped up their bets for further policy easing by the US central bank following the recent comments from several Fed officials. Adding to this, the recent tepid US economic data suggests that growth in the world’s largest economy is cooling and reaffirms market expectations for another interest rate cut by the Fed in December. In fact, the Institute for Supply Management (ISM)…
Filed under: News - @ December 2, 2025 4:25 am