Gold Prices Firm After Recent Surge To Fresh Record Highs
Gold (XAU/USD) prices consolidated the previous day’s remarkable rally and oscillated in a range near all-time highs touched during the Asian session on Thursday (4/17) amid mixed fundamental cues. Upbeat US Retail Sales data and hawkish comments from Federal Reserve (Fed) Chairman Jerome Powell on Wednesday helped the US Dollar (USD) to gain some positive traction. This, along with a generally positive tone around equity markets, held traders from placing fresh bullish bets around the commodity amid slightly overbought conditions on short-term charts.
Meanwhile, traders still expect the US central bank to cut borrowing costs at least three times by the end of this year, which might keep a lid on any meaningful USD appreciation amid weakening confidence in the US economy. Additionally, the escalating US-China trade war should act as a tailwind for the safe-haven asset and help limit losses for Gold prices. Hence, it would be prudent to wait for a strong follow-through sell-off before confirming a near-term top for the bullion and positioning for a deeper corrective decline.
Source: FXStreet