Gold Prices Rise to One-Week High Amid Mixed Cues
Gold (XAU/USD) prices pared a part of their modest intraday gains to a one-week high and traded around $2,620 levels during the first half of the European session on Tuesday (19/11), still up for the second straight day. The US dollar (USD) attracted some dip buyers and for now, seems to have halted its year-on-year declines witnessed last week amid expectations for a less dovish Federal Reserve (Fed). This, along with a generally positive tone around the equity markets, acted as a headwind for the non-yielding yellow metal.
Furthermore, market belief that US President-elect Donald Trump’s expansionary policies could boost inflation and limit the scope for further interest rate cuts by the Fed kept the US Treasury bond yields elevated. This turned out to be another factor that kept a lid on the upside in Gold prices. However, geopolitical risks stemming from the prolonged Russia-Ukraine war and ongoing conflicts in the Middle East continue to provide some support to the safe-haven precious metal, warranting caution before placing fresh bearish bets.
Source: FXSrteet