Gold bulls not ready to give up yet amid Fed rate cut bets and geopolitical risks
Gold (XAU/USD) kicks off the new week on a softer note, though it manages to reverse an Asian session dip to the $3,627-3,626 area and currently trades near the top end of a one-week-old trading range.
Traders now seem reluctant and opt to move to the sidelines ahead of this week's key central bank event risks before positioning for the next leg of a directional move. The focus will be on the crucial FOMC rate decision, which will play a key role in influencing the US Dollar (USD) price dynamics and provide some meaningful impetus to the non-yielding yellow metal.
In the meantime, rising bets for a more aggressive policy easing by the US central bank keep the USD depressed near its lowest level since July 24 and continue to act as a tailwind for the Gold price. Apart from this, rising geopolitical risks further support the safe-haven precious metal.
However, a generally positive risk tone keeps the XAU/USD pair below the record high, around the $3,675 region, touched last week. Nevertheless, the fundamental backdrop seems tilted in favor of bulls and suggests that any corrective slide might continue to attract dip-buyers.
Source : Fxstreet
