Gold prices edged lower on Wednesday, retreating from a one-month high as the US dollar regained strength. Renewed demand for the greenback weighed on the yellow metal, which had recently benefited from safe-haven flows amid global economic uncertainties.
The pullback in gold was largely attributed to a modest rebound in US Treasury yields, which bolstered the dollar’s appeal. However, the downside for gold appears limited as lingering concerns over economic growth and potential shifts in central bank policies continue to support demand for the precious metal.
Market participants are also eyeing upcoming US economic data for clues on the Federal Reserve’s next move. A more dovish tone from the Fed could renew gold’s upward momentum, while stronger-than-expected data might strengthen the dollar further.
Analysts remain cautiously optimistic about gold’s near-term prospects, citing geopolitical tensions and persistent inflation as factors likely to underpin demand. For now, gold’s retracement reflects a temporary shift in market dynamics rather than a significant change in its broader outlook.
