Gold bulls retain control near all-time peak; FOMC Minutes eyed for fresh impetus
Gold (XAU/USD) continues scaling new record highs through the first half of the European session on Wednesday and climbs to the $4,040 area in the last hour. The growing acceptance of further interest rate cuts by the US Federal Reserve (Fed) has been a key factor driving flows towards the non-yielding yellow metal.
Apart from this, mounting concerns that a prolonged US government shutdown could affect the economic performance turned out to be another factor underpinning the safe-haven bullion amid a slight deterioration in the global risk sentiment.
Meanwhile, the US Dollar (USD) advanced to its highest level since late August, albeit it does little to dent the strong bullish tone surrounding the commodity. Moreover, bullish traders largely shrug off extremely overbought conditions on short-term charts, suggesting that the path of least resistance for the Gold price remains to the upside.
Traders now look forward to the release of FOMC Minutes, due later today. This, along with Fed Chair Jerome Powell's appearance on Thursday, could offer rate cut cues and provide a fresh impetus to the precious metal.
Source : Fxstreet.com
