Gold prices (XAU/USD) edged lower on Friday, pulling back from the record high of $2,685-2,686 reached on Thursday. The decline is driven by a strengthening US Dollar (USD), which typically reduces demand for the precious metal. Additionally, improved market sentiment, buoyed by China’s fresh stimulus measures, has steered investors away from the safe-haven asset.
Despite the dip, expectations of more aggressive monetary policy easing from the Federal Reserve (Fed) are keeping the USD range-bound near its year-to-date low.
This, combined with ongoing geopolitical risks in the Middle East, is expected to limit further losses for gold. Investors are also awaiting the release of the US Personal Consumption Expenditure (PCE) Price Index, which could influence the next market moves.
You Might Be Interested In
- Gold vs Gold Bullion: What’s the Difference?
- Is Gold Going To Increase In Value
- What Is a Brick of Gold Worth? (Revealed!)