Gold Slips as Dollar Strengthens, Fed Decision in Focus
Gold prices (XAU/USD) hover around $3,335 per ounce on Monday, slipping for the third straight day as the US Dollar gains ground and risk appetite improves. A series of global trade deals, including the US–EU and US–Japan agreements, along with renewed US-China truce talks, have lifted market sentiment and reduced demand for safe-haven assets like gold.
The US Dollar continues to benefit from trade optimism, but traders remain cautious ahead of the two-day FOMC meeting starting Tuesday. The Fed is widely expected to hold rates steady, but the post-meeting press conference by Chair Jerome Powell will be key in shaping market expectations for the rest of the year.
While bullish momentum for gold is capped, investors are not making aggressive moves yet, waiting for clarity on the Fed’s future rate path. Political pressure from President Trump on the central bank, combined with dovish remarks from some Fed officials, adds uncertainty to the outlook.
Trump’s repeated criticism of Powell has sparked concerns over the Fed’s independence, while Fed Governor Waller and Vice Chair Bowman have signaled support for a rate cut at the July meeting. This puts added focus on the tone of Powell’s comments and the policy statement this week.
With key US data also due—GDP, PCE inflation, and NFP reports—the market is bracing for potential volatility. Until clearer signals emerge from the Fed, gold is likely to remain in a tight range, pressured by a firm US Dollar and improved global sentiment.
Source: Newsmaker.id
