Gold pulls back from $5,249 as US Dollar firms on Fed rhetoric

💡 DMK Insight

Gold’s recent dip from a three-week high signals shifting market dynamics. The price drop to $5,160, down 1.24%, reflects a stronger dollar amid trade policy uncertainty and hawkish Fed commentary. Traders should note that this volatility could impact gold’s safe-haven appeal, especially if the dollar continues to strengthen. Watch for key support around $5,100; a breach could trigger further selling pressure. Conversely, if gold rebounds, it might indicate renewed demand as a hedge against economic instability. Keep an eye on upcoming Fed statements and trade developments, as these will likely influence both gold and the dollar’s trajectory. The flip side here is that if the Fed’s hawkish stance leads to a stronger dollar, it could suppress gold prices further. However, if trade tensions escalate, gold could regain its luster as a safe haven. So, traders should be prepared for potential swings in both directions.