GOLD PRICE EXTENDS RANGE PLAY BELOW RECORD HIGH, BULLS NOT READY TO GIVE UP YET
- Gold price remains on the defensive amid reduced bets for a 50 bps Fed rate cut in November.
- The USD consolidates last week’s strong gains and also contributes to capping the XAU/USD.
- Geopolitical risks might continue to act as a tailwind and limit losses for the precious metal.
Gold price (XAU/USD) extends its sideways consolidative price move on Monday and remains confined in a familiar range held over the past week or so amid mixed fundamental cues. The upbeat US monthly employment details released on Friday forced investors to price out the possibility of another oversized interest rate cut by the Federal Reserve (Fed) in November. This, in turn, keeps the US Dollar (USD) supported near a seven-week top, which, along with a generally positive risk tone, acts as a headwind for the non-yielding yellow metal.
That said, the risk of a further escalation of geopolitical tensions in the Middle East might continue to offer some support to the safe-haven Gold price and help limit deeper losses. Moreover, the recent range-bound price action points to indecision among traders over the next leg of a directional move. This further makes it prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out and positioning for any meaningful corrective decline in the absence of any relevant market-moving US macro data
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