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>>Gold prices fall as inflation‑driven dollar strength weakens geopolitical safe‑haven demand.

Gold prices fall as inflation‑driven dollar strength weakens geopolitical safe‑haven demand.

crypthub

about 6 hours ago

Dollar Strength Drowns Gold Demand

Gold fell below $2,300 per ounce, a third weekly drop and a 4.2% fall from recent peaks. The US Dollar Index rose 1.8% to its highest since November, underscoring gold’s inverse link with the dollar. A stronger dollar lifts gold’s cost for foreign investors and outweighs safe‑haven demand amid geopolitical tension.

Sticky Inflation Redefines Fed Outlook

CPI showed 3.8% YoY inflation and core CPI at 3.5%, slashing June rate‑cut odds from 65% to 28%. Higher expected rates draw capital to the dollar, raising gold’s real cost. Fed officials called for patience, extending the easing timeline and reinforcing the dollar’s grip on gold.

Central Bank Buys, Geopolitics and Technical Pressure

Central banks added roughly 25 metric tons of gold, mainly from emerging‑market reserves, yet this couldn't offset heavy selling. Geopolitical flashpoints left safe‑haven demand muted as investors chose liquid dollar assets, while the 50‑day moving average slipped below the 200‑day line and futures volume rose 18%, placing support near $2,260. Bullish trader sentiment fell to 35% and managed‑money longs shrank sharply, pointing to further downside risk.