Gold Stalls Amid Rate Hike Bets and Dollar Volatility
Gold prices remain under pressure as markets prepare for major US economic events this week. The expectation of higher US interest rates continues to weigh on sentiment, but a weaker US Dollar has helped limit additional losses.
The US Federal Reserve's potential rate hike in September remains a significant concern, with the CME FedWatch Tool assigning a roughly 65% probability to an increase. Higher interest rate expectations continue to reduce the appeal of non-yielding assets like gold.
A weaker US Dollar has provided underlying support for gold and prevented a deeper decline. The Japanese Yen strengthened sharply as markets focused on the possibility of another round of official intervention, pushing USD/JPY to its lowest level in three months.