Gold Struggles Above $4,300 Amid Strong Dollar and Rising Oil Prices
The price of gold remains depressed above $4,300 as the US dollar continues to gain strength amid bets on a Federal Reserve interest rate hike and rising oil prices.
The US dollar has reached a one-and-a-half-week high, which suggests that the path of least resistance for the XAU/USD pair is to the downside. Central banks' decisions this week will be crucial in determining gold's future direction, with the Federal Reserve, Bank of England, and Bank of Japan set to announce their interest rate decisions.
Growing acceptance that central banks will maintain a hawkish stance amid oil-driven inflation risks continues to undermine non-yielding bullion. Crude oil prices remain near the highest level since May 21, fueled by Middle East jitters and clashes in the Strait of Hormuz.