Gold price turns positive for the third straight day, though the upside potential seems limited.
Geopolitical risks and China’s economic woes continue to lend support to the safe-haven metal.
The emergence of some USD buying to cap any further gains ahead of the FOMC policy decision.
Gold price (XAU/USD) attracts some dip-buying during the early part of the European session on Wednesday and turns positive for the third successive day, though any meaningful upside still seems elusive.
A further decline in the US Treasury bond yields, along with persistent worries about the deepening Middle East conflict and China’s economic woes, turn out to be key factors lending some support to the safe-haven precious metal. That said, a modest pickup in the US Dollar (USD) demand might cap the upside for the commodity.
Traders might also refrain from placing directional bets and prefer to wait on the sidelines ahead of the crucial FOMC policy decision, due later today.
The Federal Reserve (Fed) is widely expected to keep its key interest rates unchanged. Hence, the focus will be on the accompanying monetary policy statement and Fed Chair Jerome Powell’s comments at the post-meeting press conference. Investors will look for cues about the timing of the first interest rate cut, which will drive the USD demand and provide a fresh impetus to the Gold price.
Source: FXstreet
