Gold Price Falls Near $3,300 as Dollar Gets Stronger
Gold prices dropped on Monday, moving closer to $3,300 per ounce in early Asian trading. This fall happened because the U.S. dollar became stronger after fresh job data showed the American economy is doing well. In June, the U.S. added 147,000 new jobs, slightly more than expected, and the unemployment rate stayed at 4.1%.
This strong data reduced hopes that the U.S. Federal Reserve will cut interest rates anytime soon. A stronger dollar makes gold less attractive to investors because gold does not pay interest, so many traders started selling it.
However, gold still has some support due to rising global worries. Ongoing tensions in the Middle East and talk of new U.S. tariffs on trade partners are keeping some investors cautious. These risks could help gold stay in demand even if the price falls further.
Now, all eyes are on the upcoming Federal Reserve meeting minutes on Wednesday. Traders are also waiting for any news about tariffs. These events could affect the next move in gold prices.
Impact:
Gold might stay under pressure due to the strong dollar. But worries about global tensions and U.S. trade policies could possibly support prices in the short term.