Gold price pulls back from over one-week top amid reviving US Dollar demand
Gold price (XAU/USD) retreats after touching a one-and-half-week top during the Asian session and currently trades around the $2,635-2,636 region, still up for the third straight day. The risk of a further escalation of geopolitical tensions, amid the worsening Russia-Ukraine conflict, continues to offer some support to the safe-haven precious metal. That said, easing worries about a full-blown nuclear war, along with the emergence of some US Dollar (USD) dip-buying, caps gains for the commodity.
Investors now seem convinced that US President-elect Donald Trump's policies will spur economic growth and also boost inflation, which might limit the scope for the Federal Reserve (Fed) to cut interest rates. This, in turn, triggers a fresh leg up in the US Treasury bond yields, helping revive the USD demand and keeping a lid on the non-yielding Gold price. Traders, however, might refrain from fresh directional bets and opt to wait for speeches by a slew of influential FOMC members.
Source: Fxstreet