Gold prices look vulnerable below $2,700 amid stronger USD, positive risk sentiment
Gold (XAU/USD) prices fell to the $2,680 area during the first half of the European session on Friday and was pressured by a combination of factors. Expectations that Trump’s policies will spur economic growth and inflation, to a greater extent, overshadowed the Federal Reserve’s (Fed) dovish outlook, which in turn, helped revive demand for the US Dollar (USD). Moreover, the generally positive risk sentiment undermined the safe-haven precious metal.
Meanwhile, a decline in the US Treasury bond yields might hold US investors from placing aggressive bets and help limit any further depreciating move for the non-yielding Gold. That said, XAU/USD, for now, seems to have stalled its goodish recovery from the 50-day Simple Moving Average (SMA) support, or above the three-week low touched on Thursday and remains on track to post losses for the second consecutive week.
Source: FXStreet
