GOLD
Gold prices are holding steady as the European session kicks off, having briefly dipped to a 12-day low. Recent price action reflects a mix of factors: the unwinding of the “Trump trade” on one hand and traders’ caution in committing to large positions ahead of key events, including the US presidential election and the Federal Reserve’s policy meeting and interest rate decision. Gold has found some support as betting markets show a tighter presidential race, with Kamala Harris gaining ground on previously favoured Donald Trump. This has softened the “Trump trade” momentum, leading to a dip in Treasury yields—a favourable factor for non-yielding assets like gold. Additionally, geopolitical tensions in the Middle East continue to support gold’s appeal as a haven. However, gold’s upside appears capped for now as investors hold back and conserve capital ahead of this week’s major risk events.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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