Gold tumbles toward $3,950 amid stronger US Dollar, cautious Fed outlook
Gold (XAU/USD) edges lower on Tuesday after briefly testing the $4,000 psychological level earlier in the European session. At the time of writing, XAU/USD is trading around $3,935, down nearly 1.80% on the day, weighed by a stronger US Dollar (USD) and a cautious tone from the Federal Reserve (Fed).
Gold appears to be in a healthy consolidation phase following its correction from the record high of $4,381 reached on October 20. A pullback in global equities is helping to limit losses in Bullion, as the softening risk appetite offers some support to the metal. However, the upside remains limited amid reduced safe-haven flows and fading expectations of another Fed interest rate cut this year.
Nevertheless, the broader uptrend remains intact as persistent geopolitical and economic uncertainties continue to keep investors cautious. At the same time, the prolonged United States (US) government shutdown remains a drag on market sentiment.
Source: FXstreet