Gold climbs beyond $4,000; bulls shrug off a firmer USD ahead of Fed rate decision
Gold (XAU/USD) builds on its intraday ascent through the first half of the European session on Wednesday and climbs further beyond the $4,000 psychological mark, back closer to the overnight swing high.
The commodity now seems to have snapped a three-day losing streak as traders keenly await the outcome of a two-day FOMC policy meeting before positioning for the next leg of a directional move. In the meantime, dovish Federal Reserve (Fed) expectations turn out to be a key factor driving flows towards the non-yielding yellow metal.
Meanwhile, the US Dollar (USD) gains some positive traction amid some repositioning trade ahead of the key central bank event risk. Moreover, the optimism led by signs of easing trade tensions between the US and China – the world's two largest economies, might contribute to keeping a lid on any further upside for the safe-haven Gold.
This makes it prudent to wait for some follow-through buying before confirming that the recent corrective fall from the all-time peak has run its course and placing fresh bullish bets around the XAU/USD pair.
Source: FXstreet
