Gold Prices Maintain Intraday Gains Near Weekly Highs
Gold (XAU/USD) prices maintained its bid tone near weekly highs through the first half of the European session on Thursday and seemed poised to extend gains amid the global safe haven trend. US President Donald Trump announced a 25% tariff on imported cars and light trucks starting next week. This raised the risk of a further escalation of the global trade war, which dampened investors’ appetite for riskier assets and benefitted the safe haven bullion.
Furthermore, growing acceptance that the Federal Reserve (Fed) will soon resume its interest rate-cutting cycle, along with a modest US Dollar (USD) pullback from three-week highs, turned out to be other factors supporting the non-yielding Gold prices. However, hopes of more stimulus from China and a pickup in the US Treasury bond yields might act as a headwind for the XAU/USD pair as traders look forward to the US macro data for a fresh impetus.
Source: FXStreet