May 23 2025, 11:18
Gold price (XAU/USD) lacks any firm intraday direction on Friday and seesaws between tepid gains/minor losses, around the $3,300 mark during the Asian session on Friday.
The XAU/USD bears, however, seem reluctant to place aggressive bets and positioning for an extension of the previous day’s pullback from over a two-week high on the back of US fiscal concerns.
Apart from this, renewed US-China trade tensions and persistent geopolitical risks should continue to act as a tailwind for the safe-haven bullion.
Meanwhile, the initial market reaction to Thursday’s mostly upbeat US economic data turns out to be short-lived amid worries about the deteriorating US fiscal condition.
Adding to this, bets that the Federal Reserve (Fed) will cut interest rates further in 2025 fail to assist the US Dollar (USD) to capitalize on the previous day’s move up and lend additional support to the non-yielding Gold price.
Nevertheless, the XAU/USD pair seems poised to register its best weekly gain in more than a month and appreciate further.
Source: Fxstreet
