Gold price keeps the red amid resurgent USD demand; holds above $3,300 mark
Gold price (XAU/USD) retains intraday bearish bias through the first half of the European session, though it manages to bounce off the $3,300 mark, or a one-week low touched this Monday. A goodish pickup in the US Dollar (USD) demand turns out to be a key factor driving flows away from the commodity.
However, the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs further this year might hold back the USD bulls from placing aggressive bets and lend some support to the non-yielding yellow metal.
Furthermore, concerns that US President Donald Trump's massive tax-cut and spending bill would worsen America’s long-term debt problems might contribute to capping gains for the USD. Meanwhile, the market sentiment remains fragile on the back of the uncertainty surrounding US President Donald Trump's erratic trade policies.
Apart from this, fresh Israeli strikes on Yemen in almost a month temper investors' appetite for riskier assets, which further helps limit the downside for the safe-haven Gold price and warrants caution for bears.
Source: FXstreet
