Gold prices (XAU/USD) continued their downward trend for a sixth consecutive day on Wednesday, slipping just above a three-week low recorded the previous day. Despite the drop, prices remain above the $2,600 level. A key factor pressuring the non-yielding asset is the strengthening US Dollar, which has reached its highest level since mid-August, fueled by fading expectations of aggressive policy easing by the Federal Reserve.
Additionally, reports of a potential ceasefire between Lebanon’s Hezbollah and Israel have diminished demand for gold as a safe-haven asset.
This, combined with technical selling following a breach of the $2,630 support level overnight, has further contributed to the downward pressure. However, traders appear cautious about placing strong bearish positions ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes, opting to wait for further economic signals.
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