Gold price (XAU/USD) continued its two-day losing streak on Wednesday as investors kept pumping money into the US Dollar due to deepening global recession fears. Investors underpinned the US Dollar as a safe haven as developing economies are facing the wrath of higher interest rates from Western central banks and potential upside risks of deflation to the Chinese economy.
Fundamentally, it doesn’t seem bad for the Gold price as the US Unemployment Rate rose sharply to 3.8% and wage growth slowed in August. Investors hope that the Federal Reserve (Fed) is done with hiking interest rates. Fed Governor Christopher Waller supported the view, citing the latest batch of economic data that has provided more room for the central bank to assess whether the cost of borrowing needs to be increased again. Gold price extends its two-day losing streak, skids below Tuesday’s low of $1,925.37 as the US Dollar remains resilient due to the risk-off mood. The precious metal slips below the 20 and 50-day Exponential Moving Averages (EMAs). Selling interest in the yellow metal after a recovery move to near $1,950.00 indicates that investors considered the pullback as a fresh selling opportunity. The 200-day EMA will continue to act as a strong cushion for Gold bulls.