Gold prices remain capped below $2,650, weighed down by a recovering US Dollar. The greenback’s rebound comes on the back of improved economic data, dampening demand for the safe-haven metal. While earlier gains in gold were driven by geopolitical tensions and inflation concerns, the stronger dollar has shifted the narrative, making the precious metal less attractive to international buyers.
Traders are now closely monitoring key economic indicators, including US jobs data, to gauge the Federal Reserve’s next moves on interest rates. A hawkish stance could add further pressure on gold, while dovish signals might revive bullish sentiment. For now, XAU/USD remains in a consolidation phase, awaiting clearer direction.
