Gold buying persists as dovish Fed, geopolitical tensions fuel demand
The post Gold buying persists as dovish Fed, geopolitical tensions fuel demand appeared on BitcoinEthereumNews.com. Gold continues to draw support from the Fed’s dovish signal and rising geopolitical tensions. The USD stalls its recovery from a multi-year low and further lends support to the commodity. A positive risk tone does little to dent the bullish sentiment surrounding the precious metal. Gold (XAU/USD) sticks to its strong intraday gains comfortably above the $3,700 mark, or a record high, through the first half of the European session on Monday and seems poised to appreciate further amid a supportive fundamental backdrop. The US Federal Reserve’s (Fed) dovish signal, indicating that two more rate cuts would follow through the end of this year, keeps a lid on the recent US Dollar (USD) recovery from a multi-year low and acts as a tailwind for the non-yielding yellow metal. Apart from this, geopolitical risks stemming from the intensifying Russia-Ukraine war turn out to be another factor driving safe-haven flows towards Gold. Bulls, meanwhile, seem rather unaffected by a generally positive risk tone, which tends to undermine demand for the XAU/USD pair. This, in turn, suggests that the path of least resistance for the precious metal remains to the upside, though still overbought conditions warrant caution for bulls ahead of Fedspeak later today. Daily Digest Market Movers: Gold bulls retain control as Fed’s dovishness and geopolitical risks The Federal Reserve’s dovish outlook continues to act as a tailwind for the non-yielding Gold, which remains within striking distance of the $3,700 mark and the all-time peak touched last week. The US central bank lowered its benchmark rate for the first time since December and indicated the need for two more rate cuts this year amid concerns about a softening US labor market. However, Fed Chair Jerome Powell said that risks to inflation are tilted to the upside and the move to lower interest…
The post Gold buying persists as dovish Fed, geopolitical tensions fuel demand appeared on BitcoinEthereumNews.com.
Gold continues to draw support from the Fed’s dovish signal and rising geopolitical tensions. The USD stalls its recovery from a multi-year low and further lends support to the commodity. A positive risk tone does little to dent the bullish sentiment surrounding the precious metal. Gold (XAU/USD) sticks to its strong intraday gains comfortably above the $3,700 mark, or a record high, through the first half of the European session on Monday and seems poised to appreciate further amid a supportive fundamental backdrop. The US Federal Reserve’s (Fed) dovish signal, indicating that two more rate cuts would follow through the end of this year, keeps a lid on the recent US Dollar (USD) recovery from a multi-year low and acts as a tailwind for the non-yielding yellow metal. Apart from this, geopolitical risks stemming from the intensifying Russia-Ukraine war turn out to be another factor driving safe-haven flows towards Gold. Bulls, meanwhile, seem rather unaffected by a generally positive risk tone, which tends to undermine demand for the XAU/USD pair. This, in turn, suggests that the path of least resistance for the precious metal remains to the upside, though still overbought conditions warrant caution for bulls ahead of Fedspeak later today. Daily Digest Market Movers: Gold bulls retain control as Fed’s dovishness and geopolitical risks The Federal Reserve’s dovish outlook continues to act as a tailwind for the non-yielding Gold, which remains within striking distance of the $3,700 mark and the all-time peak touched last week. The US central bank lowered its benchmark rate for the first time since December and indicated the need for two more rate cuts this year amid concerns about a softening US labor market. However, Fed Chair Jerome Powell said that risks to inflation are tilted to the upside and the move to lower interest…
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