Gold touches a fresh high since October 21; seems poised to appreciate further
Gold (XAU/USD) attracts some dip-buyers near the $4,265-4,264 area and touches a fresh high since October 21 during the early European session on Friday.
Moreover, the broader fundamental backdrop suggests that the path of least resistance for the commodity remains to the upside. Expectations that the US Federal Reserve (Fed) will lower borrowing costs further in 2026 keep the US Dollar (USD) depressed near a two-month low, touched on Thursday, and continue to act as a tailwind for the non-yielding yellow metal.
Apart from this, stalled talks on the Russia-Ukraine peace deal keep geopolitical risks in play and turns out to be another factor that pushes the safe-haven Gold higher for the fourth straight day. However, a generally positive tone around the equity markets might hold back the XAU/USD bulls from placing aggressive bets and keep a lid on any further gains. Nevertheless, the bullion remains on track to register strong weekly gains as traders now look forward to speeches from influential FOMC members for short-term opportunities.
Meanwhile, US President Donald Trump is extremely frustrated with Russia and Ukraine, and he doesn't want any more talk, his spokeswoman said on Thursday. Earlier, Ukrainian President Volodymyr Zelensky said that the US was pushing it to cede land to Russia as part of an agreement to end a nearly four-year war.
There isn't any relevant market-moving economic data due for release from the US on Friday, leaving the USD at the mercy of speeches from influential FOMC members. Apart from this, the broader risk sentiment could provide some impetus to the yellow metal, which remains on track to register strong weekly gains.
Source: FXstreet
