Gold’s Rocky Climb in a Bullish Dollar Jungle
Gold’s price hit a new high of about $2,660 per ounce, but it’s lived through a tough storm. A rock‑solid U.S. dollar and rising Treasury yields were beating the metal harder than a caffeine‑overload marathon.
Yesterday’s Quick Jolt – Short‑Lived Heroism
Gold gave a short but fierce burst, leaping more than 1% higher. Yet the fierce dollar and the climb in bond yields slammed its hands down – a classic hit‑and‑run; the sterling dollar keeps turning gold into a pricey asset for folks using other currencies.
U.S. Economy: Pumped, Not Pissed
- Job Market Explosion – The JOLTS report revealed 8.1 million job openings, smashing expectations and sending a clear “Hooray!” to the labor market analysts.
- Services Sector Sprint – ISM’s index hit 54.1%, showing the services economy is still sprinting ahead.
- Inflation Fever – But the services price index shot up to 64.4%, the highest since January. That’s a red flag, keeping the inflation alarm ringing louder than a fire drill.
Gold vs. The Fed’s Dance
The robust U.S. job market nudges the Federal Reserve away from dropping rates early. New Fed rate‑cut expectations are pushed to the second half of 2025, leaving gold in a sticky spot where higher rates crush its appeal – after all, gold doesn’t pay a dividend.
Geopolitical Fizz
Even with the above gloom, geopolitical uncertainty (tariff drama involving Canada, Mexico, China, and the BRICS countries) nudges gold up as a safe‑haven. CBA’s continual gold buying for a second straight month rattles more “there’s treasure in the bank vault” vibes, supporting the price.
Heads‑Up for Investors
Market players are holding their breath as they await the next U.S. employment data and the Fed’s language in the FOMC minutes. Gold is at a crossroads, balancing the strong dollar, potential inflation, Fed policies, and geopolitical jitters.
Stick around – gold’s next move could be as dramatic as a soap‑opera finale.
