XAUUSD Gold Price (XAU/USD) remains on the front foot as bulls prod the early August swing high while keeping the reins past the $1,936-38 support confluence. In doing so, the precious metal cheers the US Dollar's retreat amid fears about the Federal Reserve's (Fed) policy pivot, especially after witnessing mostly downbeat figures in the last few days. With this, the US Dollar Index (DXY) snaps a two-day winning streak with mild losses to around 104.15.
Apart from the softer US Dollar, China's multiple measures to defend the world's second-largest economy also propelledf the XAU/USD price, due to the Dragon Nation's status as one of the world's biggest Gold customers. Among the latest actions, the government's establishment of a special cell to promote the private economy and opening up barriers for the services industry gained major attention. Previously, China's central bank, namely the People's Bank of China (PBoC), announced a heavy cut to its foreign exchange reserve requiremant ratio (FX RRR) to 4% from 6.0% effective from September 15. Additionally, a slew of China banks cut interest rates on Yuan deposits to ease the pressure from lower mortgage rates announced previously.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.