Gold XAU/SD extends its recovery to the $4,400 area

LONDON (January 2) Gold (XAU/USD) accelerated its recovery on a holiday-thinned session on Friday, with markets in Japan and China closed for the New Year festivities. The precious metal is 1.75% up on the day, reaching levels near $4,400, after bouncing from $4,274 earlier this week.

A combination of market expectations of lower interest rates in the US and growing geopolitical frictions has underpinned support from precious metals over the last few sessions. Russia has announced the revision of its stance at the peace talks with Ukraine, after an alleged drone attack in one of President Vladimir Putin’s residences, while US President Trump has elevated his tone against Iran.

FXStreet