Gold Struggles to Rise, as Higher Oil Prices Change Fed Expectations
Gold was slightly softer / largely steady around 6:00 p.m. WIB on Thursday, as a firmer U.S. dollar and renewed “higher-for-longer” rate concerns continued to cap gains—even while geopolitical risk in the Middle East remained elevated. Reuters noted spot gold was broadly flat to marginally lower around the $5.17xx/oz area during the European session (roughly 4:23 p.m. WIB), after trading weaker earlier in the day.
The main drag has been the macro impulse from the energy shock: oil’s renewed strength is keeping markets focused on forward-looking inflation risks, which reduces confidence that the Federal Reserve can cut rates aggressively. In that environment, gold—being a non-yielding asset—often struggles when the market leans toward higher borrowing costs and a stronger dollar, even if safe-haven demand is present.
At the same time, gold hasn’t been able to fully capitalize on geopolitical support because the dollar has also attracted defensive flows as the market’s primary liquidity haven. High volatility across risk assets can also turn bullion into a source of liquidity, with some investors selling gold to shore up other parts of their portfolios—another factor that can mute rallies during turbulent periods.
Newsmaker takeaway: into the WIB evening, gold remains in a tug-of-war—geopolitics provides a floor, but the combination of a firmer dollar and energy-driven inflation fears is keeping price action restrained. The next decisive move will likely depend on whether oil stays hot and whether the dollar continues to strengthen.
Source : Newsmaker.id
