Gold was still muted under the peak hit in late September on Monday. Treasury yields jumped after a better-than-expected US jobs report.
Central banks have continued to accumulate gold in August with activity concentrated in emerging economies, though the net purchases were the lowest since March. The greenback will hold steady in coming months despite an expected series of Fed rate cuts, according to FX strategists polled by Reuters who were largely split on the currency's broad direction. With price pressures now thought to have been tamed, the central bank started easing last month with an oversized reduction to forestall any further weakening in the job market.
But some highlighted safe-haven demand from increasing risks of widening conflict in the Middle East as being one of a few possible tailwinds in coming weeks. The outcome of the upcoming US presidential election and financial markets now fully pricing an October ECB rate cut were also mostly viewed as potential dollar-positive events, the poll found.
Bullion has been range-bound for weeks with support seen at $2,620. A wedge pattern is being formed – a sign of further consolidation.
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