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