Gold pulls back below $2,750 level on profit taking
Gold (XAU/USD) pulls back from the territory of the $2,750s on Wednesday after reaching new all-time highs, as traders take profit.
Investor demand for safe havens has been a major driver of Gold's recent rally amid the continued conflict in the Middle East and increased election uncertainty in the US. Former President Donald Trump and Vice President Kamala Harris are running neck-and-neck in opinion polls and the increased chance of a Trump victory is seen as a threat to a stable geopolitical.
Limiting gains for the precious metal, however, is the global bond rout as investors see interest rates around the world falling at a slower pace than previously envisioned.
This revision in outlook is the starkest in the US, where the US Federal Reserve (Fed) had previously been expected to be more aggressive in slashing interest rates, but is now on a much gentler downward trajectory. With interest rates and the US Dollar expected to remain relatively elevated, Gold loses some of its luster as a non-interest-paying asset.
Source: FXstreet
