Challenges for US Dollar, absence of hawkish Fed bias keep Gold buyers hopeful

Despite the recent rebound in the US Dollar and yields, which in turn weighed on the Gold price, there are standing challenges for the greenback in the form of its reserve currency status, as well as surrounding the Fed, which in turn keeps the Gold buyers hopeful. That said, Russia’s likings for the Chinese Yuan and Brazil’s preference for using a separate currency for the foreign trade, not to forget China’s push for its down currency, check the US Dollar price of late.

Elsewhere, the easing fears of the recession and an absence of fresh banking negatives also weigh on the Gold price and allow the US Dollar to rebound. However, these concerns are ephemeral and are without any confirmation amid looming threat of economic slowdown, which in turn tests the USD bulls.

Furthermore, the odds of witnessing a pause in the Federal Reserve’s rate hikes trajectory are still high and weigh on the US Dollar, which in turn hints at the XAU/USD rebound.