Gold bulls not ready to give up yet as Fed rate cut bets keep USD depressed
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this week. Softer labor market data overshadowed a higher-than-expected US consumer inflation reading on Thursday and lifted bets for a more aggressive policy easing by the Federal Reserve (Fed). This, in turn, keeps the US Dollar (USD) depressed near its lowest level since July 24 and continues to benefit the non-yielding yellow metal.
Apart from this, political turmoil in France and Japan, along with persistent trade-related uncertainties and rising geopolitical tensions, turn out to be other factors acting as a tailwind for the safe-haven Gold.
However, a generally positive risk tone holds back the XAU/USD bulls from placing aggressive bets amid still overbought conditions on the daily chart. Nevertheless, the commodity remains on track to register strong gains for the fourth straight week, and the aforementioned supportive factors back the case for additional gains.
Source : Fxstreet
