Gold retreats from multi-week high amid risk-on mood
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Gold (XAU/USD) edges lower during the Asian session on Friday and erodes a part of the previous day’s strong gains, snapping a three-day winning streak to the $4,285-4,286 region, or the highest level since October 21. The prevalent risk-on environment – as depicted by a generally positive tone around the equity markets – is seen undermining demand for the safe-haven precious metal. Apart from this, a modest US Dollar (USD) recovery from a two-month low touched on Thursday turns out to be another factor exerting some pressure on the commodity. Any meaningful USD appreciation, however, still seems elusive in the wake of dovish Federal Reserve (Fed) expectations, which might continue to offer support to the non-yielding Gold. Apart from this, persistent geopolitical uncertainties, amid stalled talks on the Russia-Ukraine peace deal, help limit the downside for the XAU/USD pair. Nevertheless, the bullion remains on track to register strong weekly gains. Moving ahead, traders now look forward to speeches from influential FOMC members to grab short-term opportunities heading into the weekend. Daily Digest Market Movers: Gold is pressured by receding safe-haven demand; dovish Fed favors bulls The US Federal Reserve’s dovish outlook dragged the US Dollar to an over two-month low and lifted the non-yielding Gold to its highest level since October 21 on Thursday. In a widely expected move, the US central bank lowered borrowing costs by 25 basis points on Wednesday and projected just one more rate cut in 2026. Fed Chair Jerome Powell said during the post-meeting press conference that the US labor market has significant downside risks and that the central bank does not want its policy to push down on job creation. This fueled speculations about two more rate cuts by the Fed next year and, in turn, favors the XAU/USD bulls. Meanwhile, Asian stocks tracked…
