Gold rises amid firming Fed rate cut bets, weaker USD
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Gold (XAU/USD) attracts fresh buyers following the previous day’s two-way price move and climbs back closer to the $4,150 level during the Asian session on Wednesday. The US macro data released on Tuesday pointed to signs of cooling inflation and gave the Federal Reserve (Fed) more headroom to ease rates further. Moreover, several Fed officials backed the case for a third rate cut this year in December recently. The outlook, in turn, drags the US Dollar (USD) to a one-week low and benefits the non-yielding yellow metal. Meanwhile, the prospect of lower US interest rates boosts investors’ appetite for riskier assets. This is evident from the upbeat mood across the global equity markets and might hold back traders from placing aggressive bullish bets around the safe-haven Gold. Adding to this, hopes for a peace deal between Russia and Ukraine contribute to cap a sustained rise in the precious metal. Nevertheless, the fundamental backdrop suggests that the path of least resistance for the XAU/USD pair is to the upside as investors now look to more US data for some impetus. Daily Digest Market Movers: Gold retains positive bias as dovish Fed expectations undermine USD The latest figures from the Bureau of Labor Statistics showed on Tuesday that the US Producer Prices Index rose 2.7% in September from a year earlier, slightly above the 2.6% previous and broadly in line with expectations. Stripping out food and energy, the core gauge was up 2.9% over the year compared to the 2.7% forecast and the 2.8% increase recorded in August. Separately, the US Census Bureau reported that Retail Sales rose 0.2% on a monthly basis in September. The reading was below consensus estimates for a 0.4% growth and follows a 0.6% increase in August. Adding to this, the Conference Board’s Consumer Confidence Index dropped…
