Gold struggles to capitalize on modest intraday rebound amid Fed's hawkish tilt
Gold (XAU/USD) is looking to build on a modest intraday bounce, though it lacks bullish conviction and remains on the back foot below the $4,000 psychological mark through the first half of the European session on Tuesday.
A turnaround in the global risk sentiment assists the safe-haven precious metal to attract some dip-buyers near the $3,967-3,966 area. Apart from this, concerns about economic risks stemming from a prolonged US government shutdown, geopolitical tensions, and trade-related uncertainties act as a tailwind for the commodity.
Meanwhile, the US Dollar (USD) retreats slightly from its highest level since early August and offers additional support to the Gold. However, the US Federal Reserve's (Fed) hawkish tilt could limit any meaningful USD corrective decline and keep a lid on the non-yielding yellow metal.
Moreover, Moreover, the recent range-bound price action could be categorized as a bearish consolidation phase and warrants some caution before confirming that the recent sharp retracement slide from the all-time peak, touched in October, has run its course.
Source : Fxstreet.com
