Gold regains bullish momentum, reversing some of the previous day’s retracement drop.
Gold price (XAUUSD) attracts some dip-buying during the Asian session on Thursday, halting the overnight slide from a new record high. Political instability in the United States ahead of the November 5 presidential election, as well as Middle East tensions, continue to function as tailwinds for the safe-haven commodity. Apart from that, declining US Treasury bond rates induce some US Dollar (USD) profit-taking and provide further Support for the non-yielding yellow metal.
The intraday increase is fueled by geopolitical threats and political instability in the United States.
The chances for lesser interest rate cuts by the Federal Reserve (Fed) and concerns about deficit spending following the US election should restrict any major drop in US bond yields. This, in turn, favors USD bulls, so proceed with caution before placing new optimistic bets on the Gold price and preparing for the resumption of the recent uptrend. Traders are now looking forward to the release of the flash PMIs for new insights into the global economy’s health and drive.
Daily Market Movers: Gold price benefits from refuge flows, declining US bond yields, and lower USD.
The US dollar and US Treasury bond yields rose to their highest levels in three months, causing an On Wednesday, the gold price fell intraday as profit-taking occurred.
The incoming good US macro data revealed that the economy remains on solid footing, dampening expectations for a more aggressive easing by the Federal Reserve.
Furthermore, recent comments from a number of key Fed officials suggested that the central bank will make moderate interest rate reduction during the next year.
According to the CME Group’s FedWatch Tool, traders believe there is a more than 90% possibility that the Fed will cut borrowing costs by 25 basis points in November.
Meanwhile, the likelihood of former President Donald Trump winning the November 5 US presidential election fuels discussion about the imposition of inflationary taxes.
Investors are nonetheless concerned about the spending plans of both Vice President Kamala Harris The Republican nominee, Donald Trump, will add to the deficit.
Hezbollah fired missiles at two locations near Tel Aviv and west of Haifa.
Hezbollah fired missiles at two locations near Tel Aviv and west of Haifa, prompting the Israeli military to launch air assaults in southern Lebanon and Beirut’s suburbs.
This comes on top of an imminent Israeli strike against Iran in retaliation for the latter’s ballistic missile attack on October 1, and supports the XAU/USD pair.
