Gold prices slipped below $2,700 per ounce, pressured by a stronger US Dollar and a cautious market sentiment. The metal struggled to maintain momentum as the greenback gained on robust economic data, reinforcing expectations of a more hawkish Federal Reserve stance.
Traders pointed to concerns over rising US Treasury yields as another factor weighing on gold’s appeal. Higher yields typically diminish the allure of non-yielding assets like gold. Meanwhile, mixed signals from global markets have added to investor uncertainty, pushing demand toward the relative safety of the US Dollar.
The market will closely monitor upcoming US inflation data, which could further influence gold’s trajectory. A weaker-than-expected report might bolster gold prices, while stronger inflation figures could amplify the Fed’s tightening narrative, keeping gold under pressure.
This trend underscores the metal’s vulnerability to broader macroeconomic forces, making it a pivotal focus for traders in the near term.
