Gold price recovers modest Asian session losses; climbs back above $3,300 mark
Gold price (XAU/USD) reverses an Asian session dip to a multi-day low and climbs back above the $3,300 round-figure mark in the last hour, though the upside potential seems limited.
Persistent geopolitical risks stemming from the Russia-Ukraine war, the escalation of tensions in the Middle East, and the India-Pakistan border act as a tailwind for the safe-haven precious metal. However, the latest optimism fueled by the US-UK trade deal and the start of US-China tariff negotiations over the weekend caps the upside for the commodity.
Meanwhile, hopes that the US will strike more trade deals with other countries ease US recession fears. Adding to this, the Federal Reserve's (Fed) hawkish pause on Wednesday lifts the US Dollar (USD) to a nearly one-month high. This might further contribute to keeping a lid on any meaningful appreciating move for the non-yielding Gold price.
Traders now look forward to speeches from influential FOMC members for some impetus. Nevertheless, the XAU/USD seems poised to post modest gains for the first time in three weeks.
Source : Fxstreet