Oct 8 2024, 14:38
Gold price (XAU/USD) ticks lower for the fifth straight day and drops to over a one-week low, closer to the $2,630 trading range support during the early European session on Tuesday. Investors have been paring their bets for another oversized interest rate cut by the Federal Reserve (Fed) in November, which, in turn, is seen as a key factor undermining demand for the non-yielding yellow metal. The downside, however, remains cushioned in the wake of a modest US Dollar (USD) weakness, which tends to benefit the USD-denominated commodity.
Apart from this, persistent geopolitical risks stemming from the ongoing conflicts in the Middle East could offer some support to the safe-haven Gold price. Traders might also refrain from placing aggressive directional bets and prefer to move to the sidelines ahead of the release of the FOMC meeting minutes on Wednesday. Apart from this, the US Consumer Price Index (CPI) and the US Producer Price Index (PPI), due on Thursday and Friday, respectively, will influence the near-term USD price dynamics and provide a fresh impetus to the XAU/USD.
Source: FXstreet
