Gold holds above $4,000 as risk-off mood lifts safe-haven demand
Gold (XAU/USD) steadies on Tuesday as risk-off sentiment across global markets prompts a mild pickup in safe-haven demand. At the time of writing, XAU/USD is trading around $4,040, staging a modest rebound after slipping to $3,998 earlier in the Asian session.
The risk-off tone is being driven by broad equity weakness, with global stocks sliding after a sharp tech-led selloff spilled over from Wall Street into Asia and Europe. Investors are pulling back as worries build around stretched AI valuations ahead of Nvidia’s earnings on Wednesday.
However, the precious metal still lacks strong follow-through buying as the US Dollar (USD) remains firm. At the same time, the diverging outlook among Federal Reserve (Fed) officials on a possible December rate cut is adding to the uncertainty. Traders are also refraining from taking large directional positions ahead of the delayed US economic data, keeping momentum subdued in Gold.
Source: FXstreet.com