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Indonesia News Portal for Traders | Financial & Business Updates

20 May 2025 15:48  |

Gold price bounces off daily low on broadly weaker USD, keeps the red amid upbeat market mood

Gold price (XAU/USD) finds some support ahead of the $3,200 round-figure mark and trims a part of its modest intraday losses, though the upside potential seems limited.

The US Dollar (USD) drops to a nearly two-week low amid bets that the Federal Reserve (Fed) will lower borrowing costs further in 2025, which turns out to be a key factor that offers some support to the non-yielding yellow metal.

Meanwhile, the optimism led by the US-China trade truce for 90 days and hopes for Russia-Ukraine ceasefire remain supportive of a positive risk tone.

This, in turn, might hold back bulls from placing aggressive bets and continue to act as a headwind for the Gold price. Traders now look forward to speeches by influential FOMC members, which could provide some impetus to the USD and the XAU/USD pair.

Source: FXstreet

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