Gold Prices Remain Stuck, US Dollar Gains Slightly and Market Sentiment Positive
Gold prices traded flat on Tuesday after failing to maintain a slight gain in Asia. Gold prices stabilized around $3,373. The precious metal briefly approached its highest level in nearly two weeks, boosted by speculation of a Fed interest rate cut in September following weak US employment data. This condition also depressed US bond yields and supported the price of non-yielding gold.
However, the limited strength of the US dollar restrained gold's gains. Demand for the USD strengthened after President Donald Trump signed an executive order last week imposing new tariffs on several trading partners, which will take effect on August 7. This sparked global market concerns and slightly bolstered the safe-haven currency's appeal.
On the other hand, uncertainty surrounding US-China trade relations has boosted investor interest in safe-haven assets like gold. Nevertheless, the continued positive market sentiment has added pressure on gold prices, as investors appear to remain quite optimistic about the global economic recovery.
For now, market participants appear to be adopting a cautious stance ahead of further developments regarding the Fed's monetary policy and global geopolitical dynamics. Gold prices are also expected to remain sensitive to movements in the US dollar and US bond yields in the near term. (ayu)
Source: Newsmaker.id
