Gold drifts sideways amid holiday-thinned trading
Gold (XAU/USD) is treading water on Thursday as a modest rebound in the US Dollar (USD) weighs on the precious metal. At the time of writing, XAU/USD is trading around $4,155, hovering near two-week highs reached on Wednesday, with prices up over 2% so far this week.
The broader narrative remains supportive for Bullion as several key Federal Reserve (Fed) officials have recently signalled openness to near-term easing, reinforcing market expectations that the central bank could deliver another rate cut at the December 9-10 meeting.
Expectations of another Fed rate cut have also helped global equities recover from the recent AI-valuation-led pullback, improving overall risk appetite. The resulting risk-on tone is acting as a headwind for Gold, and with US markets closed on Thursday in observance of Thanksgiving, liquidity is expected to remain thin, leaving the metal largely range-bound.
Source: FXstreet.com