11 Sep 2025
Gold drifts lower amid risk-on mood and USD uptick, ahead of US CPI
Gold struggles to capitalize on the previous day’s positive move and drifts lower on Thursday.
A positive risk tone and a modest USD uptick prompt profit-taking around the precious metal.
Fed rate cut bets could cap the USD and support the commodity ahead of the US CPI report.
Gold (XAU/USD) attracts some sellers during the Asian session on Thursday and reverses a part of the previous day's move up, though the downside potential seems limited. A generally positive tone around the equity markets is seen as a key factor acting as a headwind for the safe-haven precious metal. Apart from this, a modest US Dollar (USD) uptick undermines the commodity. Any meaningful USD appreciation, however, seems elusive amid firming expectations that the US Federal Reserve (Fed) will lower borrowing costs next week. This, in turn, might continue to lend some support to the non-yielding yellow metal.
