This data strengthened the U.S. Dollar Index, which rose by 0.18% and climbed back above 105.00. Additionally, the minutes from the Federal Reserve meeting on Wednesday revealed that some officials were ready to raise interest rates if necessary to control inflation, exerting significant downward pressure on non-yielding gold.
I believe gold prices may recover some of their losses today, Friday, despite the strong U.S. dollar. However, the upside for gold may be limited amid fading hopes and expectations of a rate cut by the Federal Reserve in September. Nonetheless, demand for safe-haven assets amid rising geopolitical tensions in the Middle East could lift gold prices in the near term.
Hawkish statements from the Federal Reserve could significantly impact gold prices. It is worth noting that higher interest rates exert downward pressure on gold prices by increasing the opportunity cost of holding non-yielding assets. Additionally, the U.S. durable goods orders and the Michigan Consumer Sentiment Index are due to be released.
[
add
]
[
|
|
...
]