Dollar Strength Weighs on Gold Prices Amid Fed Policy Uncertainty

Gold prices dipped at the start of the week as the U.S. dollar regained momentum, reducing demand for the precious metal despite ongoing geopolitical tensions.

The spot price of gold traded near $4,037 as traders weighed stronger U.S. economic data against uncertainty surrounding the Federal Reserve's policy path.

A stronger dollar made gold more expensive for holders of other currencies, dampening its appeal.

However, lingering geopolitical risks could still provide some support for safe-haven assets like gold.