Gold holds firm near $4,000 amid risk-off sentiment
Gold (XAU/USD) trades slightly firmer on Friday, holding within the familiar $3,900-$4,050 range as the prolonged United States (US) government shutdown and cautious sentiment across global markets keep safe-haven demand steady. At the time of writing, XAU/USD is trading around $4,005, up nearly 0.60% on the day after ending Thursday with modest losses.
Gold draws mild support from softer risk appetite, with global equity indices edging lower amid weakness in US technology and AI-linked stocks. Investors remain wary of stretched valuations and the potential for further market correction, prompting some rotation into defensive assets.
The precious metal also finds a safety bid amid worrisome signs for the US economy, as the ongoing shutdown raises concerns over potential economic fallout and signs of a cooling labor market.
However, Gold lacks strong follow-through buying as traders reassess the Federal Reserve’s (Fed) monetary policy outlook. Recent data and cautious remarks from policymakers have kept markets uncertain, leaving Gold largely range-bound heading into the weekend.
Source : Fxstreet.com