Gold Struggles as Strong U.S. Dollar Weighs on Bulls
Gold prices stayed below $2,340 during the Asian session as buyers remained cautious. The U.S. dollar gained strength after the Federal Reserve took a hawkish tone, which reduced gold’s appeal.
The Fed decided to keep interest rates unchanged but signaled fewer rate cuts ahead. This gave the dollar a boost and made it harder for gold to move higher.
Even with global tensions, especially between the U.S. and Iran, gold didn’t see much upside. These geopolitical risks usually support gold, but investors still held back from making big moves.
On the technical side, gold is still trading within a short-term upward channel. It bounced from the weekly low area around $2,363. However, the $2,400 level remains a tough resistance to break.
Traders are now watching for further comments from the Federal Reserve, any new geopolitical developments, and shifts in market liquidity due to the U.S. Juneteenth holiday.
Impact:
Gold might stay in a narrow range unless there are strong signals from the Fed or new global tensions. A weaker dollar could possibly lift gold prices ahead.