Gold Price Falls Slightly After Hitting Monthly High
The gold price (XAU/USD) dropped a little after reaching its highest level since mid-June. It fell to around $3,422 per ounce.
This happened because the US dollar got a bit stronger, which made some traders sell gold to take profits. Also, news about a new trade deal between the US and Japan made the market feel more positive. When the market is strong, people usually move away from safe-haven assets like gold.
However, the drop in gold was not too big. That’s because investors are still unsure about when the Federal Reserve will start cutting interest rates. These rate cut hopes are keeping gold supported.
Earlier this week, a weaker US dollar and low bond yields helped gold go above $3,390. But now that the dollar is getting stronger, gold is pulling back slightly.
Traders are closely watching updates on global trade talks and any signs from the Fed about rate changes. These things will decide where gold moves next.
Impact:
Gold might stay strong if the US dollar weakens again. If the Fed delays rate cuts or global risks rise, gold could possibly climb higher once more.