Gold prices dip as dollar gains: What's the reason
Gold dipped 0.2% to about $3,364 per ounce on Monday after a recent high, mostly because the US dollar got a little stronger—making gold less appealing for buyers outside the US.
Futures also edged down as traders weighed the powerful dollar against growing hopes for Federal Reserve interest rate cuts.
Gold's role in uncertain times
If you're following markets or thinking about investing, gold often acts like a safety net when things get uncertain.
The buzz around possible Fed rate cuts is keeping some support under gold prices, even as the strong dollar puts on the pressure.
Fed rate cut expectations and Asian market rally
The big driver: US monetary policy signals.
Fed Chair Jerome Powell recently hinted at a potential rate cut in September due to job market worries and sticky inflation—there's now an 87% chance of cuts this year.
Meanwhile, Asian markets are rallying as everyone waits for new US inflation data on August 29, which could shake things up again for both gold and global stocks.