Gold retreats from six-week highs with Fed cut bets limiting downside
Gold (XAU/USD) remains under pressure on Tuesday as traders lock in some profits following Monday’s surge to six-week highs. At the time of writing, XAU/USD is trading around $4,206 during American trading hours after slipping to an intraday low near $4,181, with the metal struggling to stage any meaningful rebound.
A modest uptick in the US Dollar (USD) and firmer Treasury yields are also weighing on the precious metal. At the same time, a cautious risk backdrop, with major global stock indices stabilizing after Monday’s sell-off, is tempering safe-haven demand and contributing to the pullback.
Despite the mild retreat, downside remains limited as Gold stays broadly supported by expectations that the Federal Reserve will lower interest rates at its upcoming monetary policy meeting next week.
With no major US economic releases due on Tuesday, Gold’s intraday moves may remain subdued, leaving price action largely driven by USD dynamics and shifts in the broader risk environment.
Source : Fxstreet.com
