Note

GOLD PRICE TRADES WITH MILD NEGATIVE BIAS ABOVE $2,500, BULLISH POTENTIAL SEEMS INTACT

· Views 15



  • Gold price struggles to capitalize on Friday’s breakout momentum amid a positive risk tone.
  • Fed rate cut bets, along with geopolitical risks, might continue to lend support to the metal.
  • Traders look to FOMC minutes and Fed Chair Powell’s speech this week for a fresh impetus.

Gold price (XAU/USD) shot to a fresh record peak – levels beyond the $2,500 psychological mark – on Friday and drew support from a combination of factors. The US Dollar (USD) came under some renewed selling pressure and dropped back closer to its lowest level since January touched earlier this week, which, in turn, benefited the commodity. Apart from this, geopolitical risks stemming from the ongoing conflicts in the Middle East and the protracted Russia-Ukraine war provided an additional lift to the safe-haven precious metal.

Meanwhile, easing fears about a possible recession in the United States (US) remains supportive of the prevalent risk-on mood and exerts some pressure on the Gold price during the Asian session on Monday. Traders also opt to lighten their bets and prefer to wait for more cues about the Federal Reserve's (Fed) policy path before positioning for the next leg of a directional move. Hence, the focus remains glued to the release of the FOMC meeting minutes on Wednesday and Fed Chair Jerome Powell's appearance at the Jackson Hole Symposium.



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

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.