Gold price (XAU/USD) has shifted into a correction phase after a juggernaut rally from yearly lows near $1,680.00 on Tuesday. The precious metal has plunged to near $1,760.00 as investors preferred the US dollar index (DXY) a better investment option after the market sentiment turned sour. The visit of US House Speaker Nancy Pelosi to Taiwan to support their local government despite the threat attempts of China spurred the risk-aversion theme.
The underpinned risk-aversion theme sent the risk-perceived currencies into the negative trajectory and improved the DXY’s appeal. The DXY displayed a sheer responsive buying action and reclaimed the crucial hurdle of 106.00. The asset extended its recovery and printed a high of 106.35 after commentary from Federal Reserve (Fed) policymakers.
The underpinned risk-aversion theme sent the risk-perceived currencies into the negative trajectory and improved the DXY’s appeal. The DXY displayed a sheer responsive buying action and reclaimed the crucial hurdle of 106.00. The asset extended its recovery and printed a high of 106.35 after commentary from Federal Reserve (Fed) policymakers.
