Feb 6 2025, 11:33
Gold (XAU/USD) prices traded with a mild positive bias during the Asian session on Thursday (6/2) and remained close to the all-time highs hit the previous day. Investors continued to seek refuge in the traditional safe-haven bullion amid growing concerns about the US-China trade war and the potential economic impact of US President Donald Trump’s trade tariffs. Further, expectations that the Federal Reserve (Fed) will continue to cut interest rates in 2025 and the recent decline in US Treasury bond yields further supported the non-yielding yellow metal.
However, investors took a breather amid slightly overbought conditions and the prevailing risk-on sentiment, which tend to dampen demand for Gold prices. Additionally, a modest uptick in the US Dollar (USD) from over one-week lows touched on Wednesday helped cap gains for the commodity. That said, the fundamental backdrop supports prospects for an extension of the well-established uptrend from December monthly swing lows. Traders now look forward to the release of US Weekly Jobless Claims for near-term impetus.
Source: FXStreet
