Gold price bulls not ready to give up despite bets for smaller Fed rate cuts
- Gold price attracts some dip-buyers and stalls its decline from over a one-week top set on Monday.
- Geopolitical risks drive some haven flows, though a bullish USD might cap gains for the commodity.
- Signs of a slowdown in China – the biggest bullion consumer – could further weigh on the XAU/USD.
Gold price (XAU/USD) witnessed an intraday pullback from over a one-week high touched on Monday and finally settled in the red, snapping a two-day winning streak amid broad-based US Dollar (USD) strength. Investors have priced out the possibility of another oversized interest rate cut by the Federal Reserve (Fed) in November. This kept the US Treasury bond yields elevated, which pushed the buck to over a two-month top and drove flows away from the non-yielding yellow metal.
Adding to this, the disappointment over China's fiscal stimulus and weak inflation figures released over the weekend did little to evoke investors' confidence. This turned out to be another factor that undermined the Gold price and contributed to the decline. That said, geopolitical risks stemming from the ongoing conflicts in the Middle East assisted the safe-haven precious metal to stall its intraday slide and hold steady above the $2,640 level during the Asian session on Tuesday.
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