Gold Investment Updates (XAU/USD) show modest gains in the Asian session on Thursday, pausing its slide from a recent record high. The precious metal is currently trading just above $2,460. However, a combination of factors may limit significant intraday gains.
Influencing Factors
The US Dollar (USD) is attracting buyers, reversing part of the previous day’s losses to a nearly four-month low due to a slight uptick in US Treasury bond yields. Additionally, strong bullish sentiment in global equity markets could act as a headwind for the safe-haven Gold Investment Updates. Despite this, the near-term bias remains bullish for gold traders.
Federal Reserve Impact
Investors have priced in a 25-basis point (bps) interest rate cut by the Federal Reserve (Fed) in September. Moreover, market participants expect the US central bank to lower borrowing costs again in December due to cooling inflationary pressures. This expectation should cap the upside for US bond yields and the USD, potentially benefiting the non-yielding Gold Investment Updates.
Conclusion
In conclusion, the gold price is experiencing modest gains, trading close to its all-time high. While factors such as USD strength and bullish equity markets may limit gains, expectations of further interest rate cuts by the Fed could support gold prices.
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