Gold price trades with mild negative bias below multi-month top amid modest USD uptick
Gold price (XAU/USD) retains its negative bias through the early European session, though it lacks follow-through selling and remains close to the highest level since early November touched the previous day.
The US Dollar (USD) looks to build on Wednesday's bounce from the monthly low, which, along with the underlying bullish sentiment around the equity markets, turn out to be key factors undermining demand for the safe-haven precious metal.
However, bets that the Federal Reserve (Fed) will cut rates twice this year keep a lid on the US Treasury bond yields and the USD, offering some support to the non-yielding Gold price.
Furthermore, uncertainty surrounding US President Donald Trump’s tariff plans, which could trigger trade wars and elevate market volatility, should help limit losses for the XAU/USD, warranting caution before confirming that the one-month-old uptrend has run out of steam.
Source: FXStreet