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Gold price builds on Tuesday’s bounce from one-week low, climbs closer to $2,650

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  • Gold price gains follow-through traction for the second day amid trade war concerns.
  • Subdued USD price action and geopolitical risks also benefit the safe-haven XAU/USD.
  • Traders look to the US Q3 GDP print and the US PCE Price Index for  fresh impetuses.

Gold price (XAU/USD) attracts some follow-through buying during the Asian session on Wednesday and looks to build on the overnight bonce from the $2,600 neighborhood, or a one-week low. Persistent geopolitical risks stemming from the protracted Russia-Ukraine war, along with concerns over US President-elect Donald Trump's tariff plans, drive some haven flows towards the precious metal for the second straight day. 

Meanwhile, the US Dollar (USD) consolidates near the lower end of its weekly range despite Tuesday's upbeat US macro data and turns out to be another factor underpinning the Gold price. That said, the prospects for a less dovish Federal Reserve (Fed) might cap the non-yielding yellow metal. Traders also await the US inflation data for cues about the future rate cuts and before placing fresh directional bets around the XAU/USD.



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