Gold Pulls Back from 3-Week High as Strong Dollar and Risk Appetite Weigh In
Gold prices dropped on Thursday after touching a three-week high around $3,377 on Wednesday. The pullback came as the U.S. dollar regained strength and investors moved towards riskier assets, reducing gold’s safe-haven demand.
The greenback bounced back due to lowered expectations of a Federal Reserve rate cut. Confidence was also boosted after President Trump dismissed rumors of replacing Fed Chair Jerome Powell. This helped push the U.S. dollar index higher, putting pressure on commodities like gold.
At the same time, global market sentiment turned slightly positive, with equities gaining and investor appetite shifting away from safe-haven assets. However, gold’s downside remains limited as ongoing trade tensions and geopolitical risks continue to offer some support.
The yellow metal’s next move now depends on fresh U.S. economic data. Traders are closely watching retail sales, jobless claims, and the Philly Fed manufacturing index. Comments from Federal Reserve officials are also expected to influence short-term price action in the gold market.
Impact:
Gold could stay range-bound if trade tensions and economic worries continue, but might face more selling if U.S. data is strong and the dollar rally continues.