Gold Prices Struggles for a Strong Intraday Direction
Gold (XAU/USD) prices remained confined in a narrow trading range near all-time tops through the first half of the European session on Friday (March 14) and seemed poised to post strong gains for the second straight week. Investors remained concerned about the potential economic impact of US President Donald Trump’s aggressive trade policies. This, along with bets that the Federal Reserve (Fed) will cut interest rates multiple times in 2025, turned out to be key factors that acted as a tailwind for the non-yielding yellow metal.
However, XAU/USD bulls refrained from placing fresh bets amid a positive risk tone, supported by positive comments from the US-Canada trade talks and reports that there will be enough Democratic votes to avoid a US government shutdown. Additionally, a further recovery in the US Dollar (USD) from multi-month lows touched on Tuesday helped cap gains for Gold prices. That said, the fundamental backdrop suggests that the path of least resistance for the commodity is to the upside.
Source: FXStreet