Gold Prices Struggle To Capitalize On Modest Intraday Gains To $3,250 Area
Gold (XAU/USD) attracted buyers during the Asian session on Monday (05/15) as a surprise downgrade of the US government’s credit rating dampened investors’ appeal for riskier assets and boosted demand for traditional safe-haven assets. Further, US Treasury Secretary Scott Bessent’s reaffirmation of President Donald Trump’s tariff threats provided additional support to the bullion. Meanwhile, speculation that the Federal Reserve (Fed) will cut interest rates further this year kept the US Dollar (USD) under pressure and turned out to be another factor that provided some support to the non-yielding yellow metal.
However, optimism over a 90-day US-China trade truce and hopes for more US-to-other-nation trade deals capped gains in Gold prices near the $3,250-3,252 supply zone. This leaves us to wait for a strong follow-through buying action before confirming that XAU/USD has formed a near-term bottom and positioning itself for an extension of last week’s decent recovery move from the $3,120 area, or over one-month lows. In the absence of any relevant market-moving US macro data, speeches by influential FOMC members will likely drive the USD and provide some impetus to the commodity.
Source: FXStreet
