Why Gold Stuck as Dollar Strengthens?
Gold (XAU/USD) prices attracted some dip-buying during the Asian session on Thursday (06/19) and recovered some of the previous day’s losses to the $3,363-3,362 area, or a weekly trough. The global risk sentiment remained fragile amid ongoing trade-related uncertainties and escalating geopolitical tensions in the Middle East. This, in turn, was seen as a key factor that acted as a tailwind for the safe-haven bullion.
Meanwhile, the US Federal Reserve (Fed) kept interest rates steady at the end of its two-day meeting on Wednesday and signaled a slower pace of cuts in the future amid concerns that US President Donald Trump’s tariffs could push up consumer prices. The hawkish outlook lifted the US Dollar (USD) to a more than one-week high and kept non-yielding Gold prices below the $3,400 mark, warranting caution for market participants.
Source: FXStreet