Gold Prices Steady Ahead Of European Session, Upside Potential Still Seems There
Gold (XAU/USD) prices struggled to gain any meaningful traction and fluctuated in a narrow range during the Asian session on Tuesday (05/27) amid mixed fundamental cues. Investors cheered US President Donald Trump’s decision to delay the imposition of tariffs on the European Union (EU), which in turn, is seen as a drag on the safe-haven commodity. However, uncertainty surrounding Trump’s trade policies capped optimism, which, along with a generally weaker US Dollar (USD), provided support to the precious metal.
Investors remain concerned that Trump’s expansive tax cuts and spending bill will worsen the US budget deficit. Further, expectations that the Federal Reserve (Fed) will further lower borrowing costs by 2025 kept the USD pressured near its lowest level since April 22 and supported non-yielding Gold prices. Additionally, rising geopolitical tensions over the prolonged Russia-Ukraine war and conflicts in the Middle East helped limit the downside for the XAU/USD pair, thus raising caution among bearish traders.
Source: FXStreet