Gold prices steady awaiting fresh impetus from US PCE Price Index
Gold prices (XAU/USD) traded with a mild negative bias heading into the European session on Thursday, albeit lacked any follow-through and remained near all-time tops. Expectations of a smaller rate cut by the Federal Reserve, coupled with concerns over the rising US fiscal deficit, continued to push the US Treasury bond yields higher. This, in turn, helped the US Dollar (USD) stall its correction from three-month highs touched earlier this week and acted as a headwind for the non-yielding yellow metal amid overbought conditions on the daily chart.
However, a meaningful corrective slide for Gold prices seems elusive amid persistent safe-haven demand stemming from uncertainties surrounding the November 5 US presidential election and Middle East tensions. Traders might also refrain from placing any aggressive directional bets and prefer to stay away ahead of the US Personal Consumption Expenditures (PCE) Price Index release. This, along with Friday’s Nonfarm Payrolls (NFP) report, should provide clues on the Fed’s interest rate outlook and provide a fresh boost to XAU/USD
Source: FXStreet