- Gold price is looking to extend gains above $1,920.00 decisively amid weakness in the US Dollar Index (DXY).
- The Fed is expected to scale down the policy tightening pace amid declining inflation.
- S&P500 recorded a four-day winning streak, portraying a risk-on market mood.
Gold price (XAU/USD) has turned sideways after a juggernaut rally to near the critical resistance of $1,920.00 in the early Asian session on Monday. The precious metal witnessed substantial buying interest after surpassing the round-level resistance of $1,900 for the first time in eight months. Also, a sell-off in the US Dollar Index (DXY) supported a rally in the Gold price.
The risk profile remains upbeat as S&P500 recorded a four-day winning streak as the Federal Reserve (Fed) is set to trim its current policy tightening pace after a decent decline in December’s inflation report. However, the return generated by US Treasury bonds remains solid and gained to 3.50% despite the risk appetite theme. The US Dollar Index remained below 101.80 despite an improvement in United States Consumer Confidence data on Friday.
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