Gold eases toward $4,200 as bulls struggle to hold earlier gains
Gold (XAU/USD) eases on Thursday as bulls struggle to sustain earlier gains, with XAU/USD drifting back toward the $4,200 level after briefly extending its five-day winning streak. The precious metal has now retraced most of its corrective decline from the all-time high near $4,381.
A broadly constructive market tone following the deal to end the United States (US) government shutdown is tempering appetite for further gains. Investors are now focusing on the delayed US economic data set to roll out as federal operations resume, which could sharpen expectations for another Federal Reserve (Fed) interest rate cut in December.
The dovish Fed outlook is weighing on the US Dollar (USD) and keeping Treasury yields subdued, limiting the downside for the non-yielding metal. Overall market sentiment also remains tilted to the upside for Gold, with both macro drivers and technical structure supporting the ongoing bullish trend.
Source : Fxstreet.com