Gold regained positive traction on Wednesday and reversed a part of the overnight steep fall.Modest USD weakness was seen as a key factor that benefitted the dollar-denominated metal.Easing geopolitical tensions, hawkish Fed expectations capped gains ahead of FOMC minutes.Gold attracted some dip-buying near the $1,850 region on Wednesday and moved away from the weekly low touched the previous day. It is worth recalling that the XAU/USD witnessed a dramatic turnaround from the eight-month high on Tuesday after Russia announced a partial pullback of troops from the Ukraine border. This helped ease fears about a significant military action/confrontation with the West and triggered a fresh wave of the global risk-on trade, which, in turn, weighed heavily on the safe-haven metal.
The said, a broad-based US dollar weakness helped limit any further losses and assisted the dollar-denominated gold to regain some positive traction. The commodity maintained its bid tone through the first half of the European session and was last seen trading around the $1,857 region. The uptick, however, lacked bullish conviction amid expectations that the Fed would adopt a more aggressive policy to combat high inflation. This held back traders from placing fresh bullish bets around the non-yielding yellow metal.
EUR/USD clings to daily gains after rising toward 1.1400.EUR/USD edged higher in the early European session on Wednesday but seems to have lost its bullish momentum before testing 1.1400. The pair clings to daily gains above 1.1350 as investors await US data, fresh developments on the Russia-Ukraine conflict.
GBP/USD holds above 1.3550 despite cautious market mood.GBP/USD trades modestly above 1.3550 on Wednesday as investors assess contradicting headlines surrounding the Russia-Ukraine conflict.The cautious market mood is limiting the pair’s upside ahead of high-tier US data and FOMC Minutes.
Gold rises toward $1,860 as US T-bond yields push lower.Gold started to stretch higher toward $1,860 after spending the first half of the day in a tight range near $1,850. The benchmark 10-year US Treasury bond yield stays in the negative territory amid a cautious risk tone and helps the yellow metal gain traction.
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