Gold prices edged lower during intraday trading, pressured by a bullish US dollar, which gained traction following strong economic data. The precious metal faced headwinds as the dollar’s strength diminished its appeal, particularly among foreign investors. Despite the losses, gold managed to remain within a narrow trading range, reflecting limited downside momentum.
The market’s focus has shifted to the Federal Reserve’s upcoming policy signals, which are expected to influence both the dollar and gold prices. Rising bond yields have further supported the dollar, intensifying gold’s struggles. However, the metal’s traditional role as a hedge against uncertainty helped cap more significant declines.
Analysts suggest that gold’s resilience is tied to global economic risks, including persistent inflation concerns and geopolitical uncertainties. These factors continue to underpin demand for safe-haven assets, providing a floor for prices even amid dollar strength.
Investors are awaiting key economic data, including US inflation and employment reports, which could provide clearer direction. Gold’s near-term trajectory remains balanced, with any signs of economic instability likely to reignite buying interest despite the current pressure from a stronger dollar.
