Gold traded slightly lower in Asian trade on Thursday, easing from a near two-week high touched in the previous session as improving risk sentiment encouraged some investors to take profits and rotate out of safe-haven assets.
By 3:55 pm AEDT (4:55 am GMT), spot gold was down 0.3% at US$4,151.79 per ounce, retreating after Wednesday’s advance of 0.8%.
The broader market mood was supported by rising optimism over a potential Russia-Ukraine peace deal and expectations of lower U.S. interest rates, both of which tempered demand for bullion.
Thin holiday trade, with U.S. markets closed for Thanksgiving, also contributed to subdued price action.
Despite the dip, investors remain confident the U.S. Federal Reserve will cut interest rates again in December. Recent mixed U.S. economic data has done little to shift that view, keeping the U.S. dollar at its lowest level in more than a week.
A weaker dollar typically benefits gold, helping cushion the downside for the non-yielding asset.
