Gold remains depressed below all-time peak on stronger USD
The post Gold remains depressed below all-time peak on stronger USD appeared on BitcoinEthereumNews.com.
Gold (XAU/USD) recovers slightly from the $3,940 area, or the daily low touched during the first half of the European session, and for now, seems to have stalled its intraday retracement slide from the all-time peak. Moreover, the supportive fundamental backdrop backs the case for an extension of the recent well-established uptrend. Domestic political uncertainties continue to weigh on the Japanese Yen (JPY) and the Euro, which, in turn, assists the US Dollar (USD) to gain positive traction for the second straight day. This, along with the underlying bullish sentiment, prompts some profit-taking around the safe-haven precious metal amid still overbought conditions on short-term charts. Any meaningful USD appreciation, however, seems limited in the wake of the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs two more times this year, which might continue to act as a tailwind for the non-yielding Gold. Apart from this, concerns that the ongoing US government shutdown could affect the economic performance keep demand for the safe-haven bullion in play amid persistent trade-related and geopolitical tensions. This, in turn, validates the positive outlook for the XAU/USD pair and suggests that any further corrective slide could be seen as a buying opportunity. Traders now look to speeches from influential FOMC members for a fresh impetus. Daily Digest Market Movers: Gold is pressured by a pickup in USD demand The US Dollar regains some positive traction following the previous day’s late pullback from the vicinity of the late September swing high and keeps a lid on the precious metal’s Asian session uptick to a fresh all-time high. The Nasdaq and the S&P 500 registered fresh record closing highs on Monday ahead of third-quarter earnings next week, which further contributes to capping the safe-haven Gold amid still overbought conditions. Traders have been pricing in…
