Weaker US Dollar further benefits Gold price

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Nevertheless, Credit Suisse’s move to bolster its financial position forces the US Dollar (USD) to reverse a part of the overnight strong gains of over 1%. This, along with the prevalent cautious mood around the equity markets, turns out to be another factor acting as a tailwind for the US Dollar-denominated Gold price. That said, the prospects for additional interest rate hikes by major central banks keep a lid on any meaningful upside for the non-yielding yellow metal. This, in turn, warrants some caution before placing aggressive bullish bets around the XAU/USD.

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