Gold Slips as Dollar Strengthens, Markets Await Fed Appointments
Gold prices edged lower on Wednesday, pressured by a modest rise in the US dollar, as investors turned their attention to upcoming appointments to the Federal Reserve Board — decisions that could shape the monetary policy outlook in the coming months.
Spot gold fell 0.1% to $3,376.01 per ounce by 03:12 GMT, after touching its highest level in nearly two weeks on Tuesday. US gold futures also slipped 0.1% to $3,431.10 per ounce.
The decline came as the dollar rebounded from a one-week low, reducing the appeal of gold for holders of other currencies. Despite the slight pullback, market projections remain upbeat, with expectations that the precious metal could test $3,393 and potentially reach the $3,400 mark, supported by ongoing safe-haven demand.
The market is also awaiting the US president’s announcement of a replacement for Federal Reserve Governor Adriana Kugler, who has decided to step down early, along with the appointment of the central bank’s next chair.
According to CME Group’s FedWatch tool, the probability of a rate cut in September stands at around 87%, following weaker-than-expected US employment data — a scenario that could bolster gold prices over the medium term.
On the trade front, tensions have resurfaced between the United States and India after renewed threats of higher US tariffs on Indian imports over its purchases of Russian oil. India dismissed the move as unjustified, pledging to protect its economic interests.
Among other precious metals, silver held steady at $37.82 per ounce, platinum dropped 0.5% to $1,313.94, and palladium fell 1% to $1,164.15.
Gold remains range-bound under pressure from a stronger dollar, yet the outlook remains positive for a potential break above $3,400 per ounce, especially with rising prospects of US interest rate cuts and lingering global market uncertainty.
