Gold picks up bids to intraday high to welcomes European session.
US Treasury yields retreat, DXY struggles before the Fed’s preferred inflation gauge of inflation.
Market sentiment stays upbeat on US stimulus, trade headlines.
Fedspeak also joins the watchers’ list for fresh impulse.
Gold (XAU/USD) stays on the front foot, picks up bids to $1,780, as market players brace for Friday’s European session. In doing so, the alpha-beta brass cheers the US dollar weakness, up 0.30% intraday and snapping the three-week downtrend, before the key inflation figures.
While the pre-data cautious sentiment might be spotted behind the greenback’s downbeat performance, the risk-on mood also cuts the USD’s safe-haven demand and adds gains to the gold prices. That said, the US dollar index (DXY), a gauge of the US currency versus the main six counterparts, snaps a two-day run-up with 0.05% downside near 91.77 by the press time.
Among the key risk catalysts, US stimulus and trade headlines were the main prefer to the market sentiment. US President Joe Biden’s ability to deliver promised stimulus and optimism concerning the US-EU trade relations, per German Trade Minister Peter Altmaier, keep gold buyers hopeful.