Gold stays range-bound as improving risk appetite limits upside
Gold (XAU/USD) trades quietly into the new week as investors weigh the evolving Federal Reserve (Fed) monetary policy outlook alongside improving sentiment in risk assets. At the time of writing, XAU/USD is trading around $4,076, bouncing off an intraday low near $4,040.
Market sentiment remains anchored to revived expectations of a December interest rate cut after New York Fed President John Williams said on Friday that he still sees room for a near-term easing move. His remarks helped reignite rate-cut pricing following a period of fading conviction.
However, uncertainty persists as several other policymakers maintain a more cautious stance. At the same time, the data vacuum ahead of the December 9-10 Federal Open Market Committee (FOMC) meeting is clouding the outlook, given that key inflation and employment reports will not be released until mid-December.
Improving risk appetite could limit upside for the non-yielding metal. As traders raise the probability of a December cut, global equities have stabilized after a turbulent week, reducing safe-haven demand.
Even so, the downside remains supported, with geopolitical risks still in play. The ongoing US-brokered Russia-Ukraine peace efforts remain fragile, and any setback could quickly revive haven flows and keep buyers interested on dips.
Source: FXstreet.com
