Gold Dips Lower as Dollar Gains Strength Following Fed’s Rate Cut

Early on Thursday, gold prices have slipped lower after the Fed came out sounding not as dovish as markets expected during their meeting..

Gold - XAU/USD

Early on Thursday, gold prices have slipped lower after the Fed came out sounding not as dovish as markets expected during their July meeting. At the time of writing, GOLD is trading at a little above $1,409.

In its latest meeting, the US Federal Reserve cut interest rates by 0.25% as markets widely expected. On the positive side, however, the Fed confirmed that there would be no reason to expect a lengthy cycle of policy easing required to insulate the US economy from global trade risks and slowdown in global economic growth.

This helped the dollar rise higher to a two-year high, while the safe haven appeal reduced. Both these factors turned gold bearish, causing it lose over 0.2% of its value. Analysts are expecting the US dollar to turn even more bullish, which could further dent gold’s appeal in the coming days.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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