Gold bounces off session lows as buyers return post-US data
Gold (XAU/USD) trims earlier losses on Tuesday, trading around $3,847 at the time of writing. The metal is regaining ground after dipping toward the $3,800 mark earlier in the day, recovering from a sharp intraday pullback from a fresh all-time high near $3,871, as buyers stepped back in following softer US Consumer Confidence data and a muted reaction to the latest JOLTS Job Openings report.
Despite the sharp intraday drop, Bullion’s near-term floor appears firm, supported by investor demand for safe havens amid the growing risk of a United States (US) government shutdown, should lawmakers fail to strike a funding deal before Tuesday at midnight. At the same time, ongoing geopolitical frictions continue to underpin Gold’s appeal as a go-to safe-haven asset, while renewed US tariffs stir concerns over global trade, reinforcing demand for the yellow metal as a hedge against uncertainty.
Moreover, investors are increasingly pricing in higher odds of further Federal Reserve (Fed) interest rate cuts, which lowers the opportunity cost of holding non-yielding Bullion. Against this backdrop of risk aversion and expectations for easier monetary policy, the broader outlook for Gold remains constructive, even as the market digests the latest round of profit-taking.
Source: Trading Economics
