Gold gains as risk-off mood deepens; traders await Fed Minutes
Gold (XAU/USD) edges higher on Wednesday as a risk-off tone across global markets revives safe-haven demand.
At the time of writing, XAU/USD is trading around $4,115, up nearly 1%, extending its rebound after briefly slipping below the $4,000 threshold on Tuesday.
Global equities remain under pressure amid unease over stretched tech valuations, keeping investors on the defensive. Sentiment is also cautious ahead of the Federal Open Market Committee (FOMC) Meeting Minutes due later in the day, with markets bracing for the delayed September Nonfarm Payrolls (NFP) report, scheduled for Thursday. In turn, the risk-averse environment is helping the metal maintain upward traction.
However, growing skepticism among Federal Reserve (Fed) officials about delivering another interest-rate cut in December is clouding the monetary policy outlook.
As officials remain split between lingering inflation risks and signs of labour-market weakness, traders are scaling back expectations for further easing, which could cap gains in Gold.
Source: FXstreet.com