Gold price (XAU/USD) remains under some selling pressure for the third successive day and drops to a two-week low, around the $3,230-$3,229 area during the Asian session on Thursday, APA-Economics reports citing mitrade.com.
US President Donald Trump's remarks earlier today add to the recent optimism over the potential de-escalation of the US-China trade war and turn out to be a key factor driving flows away from the safe-haven precious metal. Furthermore, the US Dollar (USD) is looking to build on its gains registered over the past two days and exert additional downward pressure on the commodity.
The intraday downfall in the Gold price could further be attributed to some technical selling following a breakdown below the $3,265-3,260 pivotal support. Any meaningful USD appreciation, however, seems elusive amid rising bets for more aggressive policy easing by the Federal Reserve (Fed), bolstered by the surprise contraction in US GDP and signs of easing inflationary pressure. This could act as a tailwind for the non-yielding yellow metal, warranting caution before positioning for an extension of the retracement slide from the $3,500 mark, or the all-time peak.
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