Gold bounces off daily low; remains close to nearly two-week top amid Fed rate cut bets
Gold edges lower on Thursday as the upbeat market mood undermines safe-haven demand.
A modest USD recovery from over a one-week low also exerts pressure on the commodity.
Dovish Fed expectations should cap the USD and lend support to the non-yielding XAU/U
Gold bounces off daily low; remains close to nearly two-week top amid Fed rate cut bets$
Gold (XAU/USD) recovers slightly from the daily low, though it sticks to a mildly negative tone heading into the European session amid a combination of negative factors. The prospects for lower US interest rates, along with hopes for a peace deal between Russia and Ukraine, remain supportive of the upbeat market mood. This, along with a modest US Dollar (USD) rebound from an over one-week low, turns out to be a key factor undermining the safe-haven precious metal.
Meanwhile, a mixed set of US economic indicators released this week did little to alter market expectations that the US Federal Reserve (Fed) will cut interest rates again in December. This might keep a lid on any meaningful USD appreciation and continue to act as a tailwind for the non-yielding Gold. Furthermore, thin trading volumes on the back of the Thanksgiving Day holiday in the US warrant some caution for the XAU/USD bears and positioning for deeper intraday losses.$BNB