Gold Pulls Back After Record High as Dollar Recovers
Gold prices reached a new record high above $3,700 per ounce right after the US Federal Reserve cut interest rates. But after the sharp rise, the rally has slowed down and gold is now moving lower. The reason is the US Dollar’s recovery, which makes gold costlier for buyers using other currencies.
The Fed reduced rates by 25 basis points this week. Chair Jerome Powell described the cut as a “risk-management move” and added that the Fed is not in a hurry to lower rates further. This cautious message has supported the Dollar, putting pressure on gold.
At the same time, safe-haven demand for gold remains in the market. Rising geopolitical tensions and global uncertainties are keeping buyers interested. However, after strong recent gains, many traders are now booking profits, which is slowing the upward move.
On the technical side, gold is showing signs of being overbought on daily charts. If the Dollar continues to rise, gold could pull back toward support levels around $3,645. On the other hand, if gold manages to break above $3,700–$3,707, it could extend its rally further.
Impact:
Gold might see more downside if the Dollar stays strong. A rebound could possibly happen if global risks rise or if the Fed hints at more cuts.
