Gold "Slows" Near ATH, Dollar Strengthens
Gold (XAU/USD) is taking a breather near its record high after today's strong rally. In the European session, its movement tended to consolidate as the US dollar strengthened slightly from overnight weakness, prompting some market participants to refrain from adding new positions—especially given the overbought short-term conditions.
Risk-on sentiment also weighed on gold, as Trump reversed course on Greenland, which has slightly eased geopolitical tensions. When markets calm down, interest in safe-haven assets typically wanes, so gold doesn't immediately accelerate.
However, the dollar's room for strengthening is also considered limited because market expectations still point to the Fed cutting interest rates (at least two times) in 2026. This typically remains a support for gold because it doesn't pay interest, so when interest rates fall, its appeal increases relatively.
In conclusion: although there is potential for a small correction, the fundamentals remain supportive. Therefore, if there is a reasonable pullback, the market tends to view it as a buy-on-dip opportunity, and gold still has the potential to close the week with strong gains.
Source: Newsmaker.id
