Title: Gold Price Forecast: XAU/USD sticks to modest recovery gains, upside potential seems limited
Aug 18, 2022 07:01AM ET
Gold gains positive traction on Thursday and snaps a three-day losing streak to a two-week low.
Recession fears weigh on investors’ sentiment and offer support to the safe-haven precious metal.
Hawkish Fed expectations continue to underpin the USD and might cap gains for the commodity.
Gold edges higher on Thursday and snaps a three-day losing streak to the $1,760 area, or a two-week low touched the previous day. The XAU/USD holds on to its modest intraday gains through the first half of the European session and is currently placed near the daily high, just above the $1,765 level.
Growing worries about a global economic downturn continue to weigh on investors' sentiment, which is evident from a generally weaker tone around the equity markets. The anti-risk flow turns out to be a key factor offering some support to the safe-haven gold, though a combination of factors might hold back traders from placing aggressive bullish bets.
Gold price portrays corrective pullback amid sluggish Asian session.
Fears of economic slowdown in China, firmer yields exert downside pressure on XAU/USD.
Fed Minutes failed to impress DXY bulls amid mixed US data.
Second-tier US data, risk catalysts could entertain gold traders.
Gold price (XAU/USD) prints mild gains during the sluggish trading session amid early Thursday morning in Europe. In doing so, the bright metal snaps a four-day downtrend while bouncing off the weekly low, up 0.15% intraday near $1,764 by the press time.
The bullion’s latest rebound pays a little heed to the market’s risk-off mood, as well as the US Dollar Index (DXY) strength. The reason could be linked to the recession woes in the US and the firmer Treasury yields, which in turn drive the rush towards a traditional haven.