Gold remains depressed below $4,200; lacks follow-through as traders await US data
Gold (XAU/USD) recovers slightly from the daily low, though it keeps the red below the $4,200 mark through the first half of the European session on Thursday amid mixed fundamental cues.
A generally positive tone around the equity markets is seen as a key factor exerting some downward pressure on the safe-haven precious metal. However, geopolitical uncertainties stemming from the protracted Russia-Ukraine war, along with dovish US Federal Reserve (Fed) expectations, help limit the downside for the commodity.
Investors seem convinced that the central bank will lower borrowing costs again next week amid signs of a softening US labor market and cooling economy. This, in turn, fails to assist the US Dollar (USD) in registering any meaningful recovery from its lowest level since late October, touched on Wednesday, and keeps the non-yielding Gold above the weekly low.
Next on tap is the US economic data, which will drive the USD and the XAU/USD pair ahead of the US Personal Consumption Expenditure (PCE) Price Index on Friday.
Source : Fxstreet.com