Gold refreshes daily top as Fed rate cut bets, geopolitical risks offset risk-on mood
Gold (XAU/USD) touches a fresh daily peak during the first half of the European session, though it lacks follow-through buying amid the upbeat market mood.
The US Dollar (USD) struggles to capitalize on the previous day's bounce from a one-week low amid the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs two more times this year. This, along with persistent geopolitical tensions, continues to act as a tailwind for the precious metal.
Meanwhile, the global risk sentiment seems unfazed by a partial US government shutdown for the third straight day, which, in turn, is holding back the XAU/USD bulls from placing fresh bets. Traders now look forward to speeches from influential FOMC members, which will drive the USD demand and provide some impetus to the non-yielding Gold.
Nevertheless, the XAU/USD pair remains on track to register strong gains for the seventh consecutive week.
Source: FXstreet