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Gold extends range play below record high amid positive risk tone; bullish bias remains
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FXStreet Forex & Commodities News
Gold (XAU/USD) remains confined in a narrow trading band through the first half of the European session as bulls now seem reluctant to place fresh bets amid still overbought conditions.
Furthermore, investors seem unfazed by a partial US government shutdown, which is evident from a generally positive tone around the equity markets and contributes to capping the safe-haven commodity.
That said, dovish Federal Reserve (Fed) expectations keep the US Dollar (USD) bulls on the defensive and continue to act as a tailwind for the non-yielding yellow metal.
Daily Digest Market Movers: Gold bulls seem non-committed as positive risk tone offsets dovish FedUS President Donald Trump's Republican Party failed to agree with opposition Democrats on a way forward on a spending bill.
The momentum, however, runs out of steam amid dovish Fed expectations, which continue to support the non-yielding yellow metal.