Gold Holds Above $4,050 as Inflation Fears Ease, USD Recovery Limits Gains
Gold holds above $4,050 in Asian trading as easing US inflation fears reduce expectations for Fed rate hikes, but a modest US dollar rebound keeps gains in check.
XAUUSD
Spot gold (XAU/USD) opened the week with a modest bullish gap but failed to surmount the $4,100 level during the Asian session. The US dollar index staged a mild recovery from its lowest point since June 17, acting as a headwind for the metal.
Easing US inflation fears are curbing market bets on further Federal Reserve tightening, providing underlying support and keeping gold above the $4,050 mark. The tug-of-war leaves the precious metal trapped in a narrow range, with upside attempts capped by the dollar’s bounce.
Source: FXStreet Forex News