Gold price remains under some selling pressure for the second successive day on Tuesday – also marking the fifth day of a negative move in the previous six – and drops to a one-and-half-week low during the Asian session. The XAU/USD currently trades just below the 1,915 level, down over 0.10% for the day, and seems vulnerable to weaken further in the wake of growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer. In fact, the Fed warned last week that still-sticky inflation in the United States (US) was likely to attract at least one more interest rate hike by the end of this year. Moreover, a majority of Fed policymakers now see only two rate cuts in 2024 as compared to four projected previously.
Trade active:
The US debt crisis is renewed and the government shutdown threatens the markets
Disagreements dominate the US Congress, as the Republican parties have not shown any progress in reaching an agreement on the temporary funding bill. With only one week left before the federal government runs out of money, which could lead to a government shutdown.
Disagreements dominate the US Congress, as the Republican parties have not shown any progress in reaching an agreement on the temporary funding bill. With only one week left before the federal government runs out of money, which could lead to a government shutdown.
