Gold price eases from nearly two-month peak amid rebounding USD; Middle East tensions favor bulls
Gold price (XAU/USD) retreats slightly from the highest level since April 22 touched earlier this Friday, albeit holding above the $3,400 mark heading into the European session.
Against the backdrop of trade-related uncertainties, a further escalation of geopolitical tensions in the Middle East tempers investors' appetite for riskier assets. This is evident from a sea of red across the global equity markets and acts as a tailwind for the safe-haven bullion.
Apart from this, the growing acceptance that the Federal Reserve (Fed) would lower borrowing costs further in 2025, amid signs of cooling inflation, contributes to the bid tone surrounding the non-yielding Gold price for the third straight day.
However, a goodish US Dollar (USD) rebound from the lowest level since March 2022 holds back traders from placing fresh bullish bets around the commodity and keeps a lid on any further appreciating move.
Source: FXStreet