Gold struggles near $3,400 as dollar buying slows momentum
Gold fell back just under $3,400 after reaching highs near $3,452. This drop came even though worries about the Israel–Iran conflict remain high. Some traders are taking profits, and a bit of dollar buying limited gold’s rise.
During Asia trading, gold dipped to around $3,374–3,373 but then bounced back near $3,400. This happened because many expect the U.S. Federal Reserve to hold interest rates steady tomorrow, with thoughts of possible cuts later in the year—especially if inflation stays low. That view keeps the U.S. dollar from weakening too much, which helps gold a bit.
Geopolitical tensions also support gold’s price. News like missile attacks in the Middle East and threats to shipping tankers are keeping some demand for safe assets like gold.
Still, gold buyers seem hesitant. Many are waiting for clear signals from the Fed on future rate cuts. Some also want to see how upcoming U.S. retail sales data might affect the dollar and gold.
Impact: Gold might keep bouncing between $3,335 and $3,400 as traders wait for Fed clues. Weak inflation or more tension could push it higher, while a stronger dollar might cap gains.