Dollar’s Strength and Fed’s Inflation Concerns Impact Gold’s Movement
The spot price of gold retreated on Wednesday, dropping below the crucial $1,900 level that holds significance for gold investors.
Ed Moya, an analyst at OANDA, pointed out that gold’s bearish trend persists with the $1,900 level acting as a significant barrier.
The Dollar Index, measuring the greenback against major currencies, reached a nearly three-month high of 103.412, recovering from last month’s low of 99.22, the lowest since April 2022.
The minutes from the July meeting indicated that. Fed officials expressed concern about inflation’s pace and hinted at the possibility of more rate hikes unless circumstances change.
As inflation remains above the Committee’s goal and the labor market remains tight, participants foresee considerable upside risks to inflation,