Gold Prices Consolidate Around $3,300, Upside Potential Still Seems There
Gold (XAU/USD) prices lacked any firm intraday direction on Friday (05/23) and was seen wavering between marginal gains/minor losses, around the $3,300 mark during the Asian session on Friday. However, XAU/USD bears seemed reluctant to place any aggressive bets and positioned themselves for an extension of the previous day’s decline from over two-week highs amid US fiscal concerns. Moreover, renewed US-China trade tensions and persistent geopolitical risks should continue to act as a tailwind for the safe-haven bullion.
Meanwhile, the initial market reaction to Thursday’s mostly upbeat US economic data turned out to be short-lived amid concerns about worsening US fiscal conditions. Moreover, bets that the Federal Reserve (Fed) will cut interest rates further by 2025 failed to help the US Dollar (USD) capitalize on the previous day’s uptick and provided additional support to the non-yielding Gold prices. Nevertheless, the XAU/USD pair seems set to post its best weekly gain in over a month and continue to strengthen.
Source: FXStreet