Gold Prices Re-Hit $3,300 Amid Weaker USD, Rising Safe-Haven Demand
Gold (XAU/USD) prices extended its weekly uptrend for the third straight day and continued to climb beyond the $3,300 mark, hitting a one-and-a-half-week high during the Asian session on Wednesday (May 21). The selling bias in the US Dollar (USD) remained unabated after US fiscal concerns, which led to a downgrade of the US government’s credit rating on Friday. This, in turn, was seen as a key factor that acted as a tailwind for the commodity.
Meanwhile, Federal Reserve (Fed) officials were cautious about the US economic outlook. Moreover, growing market confidence that the US central bank will further lower borrowing costs this year dragged the USD to a near two-week low and further weighed on the non-yielding Gold prices. Moreover, renewed US-China trade tensions support prospects for a further near-term appreciation for the safe-haven precious metal.
Source: FXStreet
