Gold prices (XAU/USD) saw a slight uptick on Thursday, breaking a six-day losing streak that had pushed the precious metal to a nearly three-week low, hovering around the $2,605-$2,604 level reached the previous day. However, this modest recovery appears fragile, with the market showing little bullish momentum. Investor sentiment remains cautious amid growing expectations that the Federal Reserve will implement a 25 basis point interest rate cut in November. Such a move could further support the US Dollar, which has maintained its strength, reaching an eight-week high, and continues to weigh on the appeal of the non-yielding gold.
Many traders are taking a wait-and-see approach ahead of the release of key US inflation data, expected later in the North American trading session. The Consumer Price Index (CPI) report is likely to shape market expectations regarding the Fed’s rate cut decision next month.
The CPI figures could influence USD demand and play a significant role in shaping gold’s near-term trajectory. Additionally, ongoing geopolitical tensions, particularly in the Middle East, could offer short-term trading opportunities for the safe-haven asset.
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