Gold Corrects Slightly, But Bullish Outlook Remains
Gold prices (XAU/USD) weakened slightly in Asian trading on Wednesday (August 6th), after previously posting four consecutive days of gains and touching their highest level in nearly two weeks at around $3,390 per ounce. Strengthening Asian stock markets, following a rebound in US stock futures contracts, was one factor dampening demand for gold as a safe-haven asset.
Furthermore, the moderate strengthening of the US dollar also weighed on gold prices, making the precious metal more expensive for holders of other currencies. However, selling pressure appeared limited as market sentiment toward gold remained positive amid expectations of US monetary policy easing.
Recent economic data from the US, including a weaker-than-expected jobs report (NFP) and a disappointing ISM Services PMI, further strengthened expectations that the Fed would cut interest rates at its September meeting. These expectations of a rate cut have made investors more cautious about accumulating positions in the US dollar and indirectly supported gold prices.
Market participants are now awaiting statements from several Federal Reserve officials, particularly FOMC members, for further clues regarding the direction of interest rate policy. If the dovish tone is reiterated, gold prices have the potential to resume their upward trend in the near term. (ayu)
Source: Newsmaker.id
