Gold price languishes near daily low amid renewed USD buying, downside seems protected
Gold price (XAU/USD) sticks to modest intraday losses heading into the European session on Thursday, though it lacks bearish conviction and holds comfortably above the weekly low touched the previous day.
US President Donald Trump denied reports that he is planning to fire Federal Reserve (Fed) Chair Jerome Powell. Apart from this, bets that the US central bank will delay cutting interest rates assist the US Dollar (USD) to reverse Wednesday's pullback from its highest level since June 23. This, along with a generally positive tone around the equity markets, is seen undermining the precious metal.
That said, persistent uncertainties surrounding Trump's trade policies and their impact on the global economy keep investors on edge. This might continue to offer some support to the safe-haven Gold price and makes it prudent to wait for some follow-through before positioning for an extension of the overnight pullback from a three-week high.
Investors now look to the release of US Retail Sales and the usual Weekly Initial Jobless Claims data. Apart from this, speeches from influential FOMC members should drive the USD demand and produce trading opportunities around the non-yielding yellow metal.
Source : Fxstreet