Gold price gets some traction and ends a three-day losing skid amid weak USD demand.
The gold price (XAUUSD) attracted some buyers during the Asian session on Monday and appears to have halted a three-day-old corrective slide from its all-time high reached last week. Against the backdrop of dovish Federal Reserve (Fed) predictions, US President Joe Biden’s withdrawal from the presidential campaign pushes some investors to unwind trades based on a Trump victory. This in turn maintains a three-day losing streak has sent prices below $2,400, a one-week low seen on Friday.
The US Dollar is under increased selling pressure following US President Joe Biden’s withdrawal from the presidential election on Sunday, prompting investors to reverse some investments based on a Trump victory.
Fed rate cut bets further weaken the USD and benefit the non-yielding XAUUSD.
Vice President Kamala Harris has consolidated her place as the leading Democratic candidate in the presidential election, but former President Donald Trump remains the betting favorite.
Meanwhile, market participants have completely priced in the Federal Reserve’s September interest rate decrease, which keeps USD bulls on the defensive and supports the XAUUSD.
Traders await the US Personal Consumption Expenditure (PCE) Price Index data on Friday.
However, the underlying positive tone throughout the global equities markets caps gains for the safe-haven commodity as traders await the US Personal Consumption Expenditure (PCE) Price Index data on Friday.
The critical inflation report will influence views regarding the Fed’s rate-cutting path, driving USD demand in the short term and providing a new directional thrust to the commodity.
Furthermore, the release of flash PMIs this week should reveal clues about the global economy’s health and provide the metal a boost, allowing traders to seize short-term opportunities.
