Gold Prices Trade Steady In Negative Territory
Gold prices (XAU/USD) moved lower during the Asian session on Monday (05/26) in response to US President Donald Trump’s decision to delay the implementation of tariffs on the European Union (EU). This, in turn, restrained investors from placing fresh bullish bets around the precious metal, especially after last week’s sharp rally of nearly 5%. However, any meaningful corrective decline seems elusive amid concerns over the US’s deteriorating fiscal health. This, coupled with bets that the Federal Reserve (Fed) will lower borrowing costs further in 2025, dragged the US Dollar (USD) to a fresh monthly low and should lend some support to the non-yielding yellow metal.
In addition, persistent geopolitical risks stemming from the protracted Russia-Ukraine war and the ongoing conflicts in the Middle East should contribute to limiting deeper losses for Gold prices. Hence, it would be prudent to wait for a strong follow-through selling before confirming that the recent up-trend witnessed over the past week or so in XAU/USD has run out of steam and setting yourself up for deeper losses. Traders might also opt to wait for the release of this week’s FOMC meeting minutes and important US macro data, including the Personal Consumption Expenditures (PCE) Price Index, before positioning for the next leg of a directional move.
Source: FXStreet
