XAUUSD SIGNAL
Gold Price Forecast: XAUUSD trades with modest losses, downside seems cushioned
- Gold retreats from over a one-month high touched on Tuesday amid a modest USD uptick.
- Reviving safe-haven demand offers support to the XAUUSD and helps limit the downside.
- Bets for less aggressive Fed rate hikes support prospects for the emergence of dip-buying.
XAUUSD SIGNAL :Gold edges lower on Wednesday and reverses a part of the previous day’s breakout rally to a more than one-month high. The XAUUSD remains on the defensive through the early European session, albeit manages to hold its neck above the $1,700 round-figure mark.
The US Dollar attracts some buying and moves away from its lowest level since September 20 touched the previous day, which, in turn, is seen as a key factor weighing on the dollar-denominated gold. Despite rising bets for a less aggressive policy tightening by the Fed, the markets are still pricing in the possibility of at least a 50 bps rate hike in December. This remains supportive of elevated US Treasury bond yields and offers some support to the greenback.
XAUUSD SIGNAL :That said, the cautious market mood extends some support to the safe-haven gold and might limit further losses, at least for the time being. Investors turn cautious amid growing worries about a deeper global economic downturn and uncertainty over the results of the US mid-term elections. Traders might also prefer to move to the sidelines ahead of the crucial US consumer inflation figures, due for release on Thursday. This, in turn, warrants some caution for bearish traders. Confuse Which Broker is best ? , Here you can find the best regulated broker
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