Oct 7 2024, 14:18
Gold price drops to $2,640, holds above Friday’s post-NFP low and trading range support Gold price (XAU/USD) attracted fresh sellers on Monday and dropped to a fresh intraday low, around the $2,640 region heading into the European session. The US dollar (USD) hovered near a seven-week high as traders continued to price in the possibility of an outsized interest rate cut by the Federal Reserve (Fed) in November following the release of an upbeat US monthly jobs report on Friday. This, along with a generally positive risk tone, turned out to be key factors that dented demand for the yellow metal.
The global risk sentiment remained well supported by easing concerns over an economic downturn in the US and optimism led by a slew of stimulus measures from China. That said, persistent geopolitical risks stemming from the ongoing conflicts in the Middle East and fears of a full-blown war in the region might continue to act as a tailwind for the safe-haven Gold price. This makes it prudent to wait for a break below the $2,635-$2,630 support before positioning for deeper losses for XAU/USD.(ayu)
Source: FXstreet
