GOLD PRICE HANGS NEAR WEEKLY LOW, 50-DAY SMA HOLDS THE KEY FOR BULLS
- A combination of factors exerts pressure on the Gold price for the fourth successive day.
- Signs of stability in the equity markets undermine the metal amid modest USD strength.
- Bets for a 50-bps Fed rate cut in September and geopolitical risks to limit further losses.
Gold price (XAU/USD) prolongs its recent pullback from the vicinity of the record high and drifts lower for the fourth straight day on Wednesday, although the downfall lacks bearish conviction. Global equity markets seem to have stabilized following the recent steep losses. This, along with a modest US Dollar (USD) strength, turns out to be a key factor exerting downward pressure on the precious metal.
Meanwhile, the incoming softer US macro data fueled concerns that the world's largest economy was slowing faster than initially expected. This comes on top of China's economic woes, which, along with escalating geopolitical tensions in the Middle East, might cap any optimism in the markets. Apart from this, dovish Federal Reserve (Fed) expectations could act as a tailwind for the non-yielding Gold price.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.