- Gold price attracts some haven flows on Friday amid the looming US government shutdown.
- The Fed’s hawkish tilt remains supportive of elevated US bond yields and caps the XAU/USD.
- Traders now look forward to the release of the US PCE Price Index for short-term opportunities.
Gold price (XAU/USD) maintains its bid tone through the first half of the European session on Friday amid the prevalent risk-off mood. Against the backdrop of persistent geopolitical risks and trade war fears, the threat of a US government shutdown drives some haven flows towards the bullion. The global flight to safety leads to a modest pullback in the US Treasury bond yields, which caps the recent US Dollar (USD) rally to a two-year peak and lends additional support to the commodity.
That said, the Federal Reserve’s (Fed) hawkish signal that it would slow the pace of rate cuts in 2025 acts as a tailwind for the US bond yields…
