Gold Holds Near June High as Rate Hike Bets Fading Weigh on US Dollar
Gold prices are holding steady near their June high as investors scale back expectations for further Federal Reserve interest rate hikes, putting downward pressure on the US dollar.
The precious metal has found renewed buying interest due to easing Treasury yields and a weakening greenback, making gold more attractive to international buyers.
According to CME Group's FedWatch tool, the probability of a rate hike at the next Federal Open Market Committee meeting has declined notably over the past week.
The June 5 high marked a significant resistance level for gold, which has been range-bound between $1,930 and $1,980 for several weeks. Analysts point to a combination of factors supporting the metal: central bank buying, geopolitical uncertainty, and expectations that the Fed may be nearing the end of its tightening cycle.