Gold Slips a Touch as the Dollar Gains Ground
By the end of Monday, gold was hovering around $2,387, a slight dip back from the earlier resistance near $2,400. The reason? The U.S. dollar was on a streak, climbing as investors stocked up on the safe‑harbor currency.
Middle East Tension Keeps the Dollar in the Driver’s Seat
Word that the conflict could spill into Lebanon is worrying the market. That mess? It’s giving the dollar an edge, making investors grab onto it instead of gold. You can almost feel the tension in the headlines, the uncertainty lingering in every market move.
Fed Meeting Looms—What It Means for Gold and the Dollar
- June PCE data just out showed inflation steady near the Fed’s 2% goal.
- After the September easing cycle starts, the Fed might give him hints about cutting rates.
- June’s job openings and July’s Consumer Confidence Index (coming Tuesday) are likely to slide a bit—further nudging the expectation of a rate cut.
In short, while geopolitical jitters are pulling the dollar stronger, the flame that fuels gold isn’t quite enough to spark a big rally. The global stock markets are staying upbeat, and that optimism siphons off some of the gold demand, favoring the dollar.
Yield Impact: 10‑Year Treasury In Arrears
Yields on the benchmark 10‑year U.S. Treasury have dipped. This stems from the optimism that the Fed could cut rates in September. Though there is still a 95% chance the Fed keeps rates flat this Wednesday, traders are watching for the next day’s FOMC look‑as‑well as the August Nonfarm Payroll data.
These wake‑ups could propel the dollar higher and stir a few jitters in gold—two sides of the same coin. The upside, though, remains capped in current conditions.
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