Gold Prices Retreat from Two-Month High Amid Shift in Fed Hike Bets
Gold prices retreated from a two-month high on Tuesday as tensions in the Middle East eased and expectations around Federal Reserve monetary policy shifted.
The sharp rally that had been fueled by safe-haven demand and speculation about a potential pause in US interest rate hikes has lost momentum, leading to a correction in gold prices.
Analysts note that the metal is now testing key support levels, with the next major support zone around $1,950 per ounce. A break below this level could accelerate selling, while a rebound would depend on renewed geopolitical tensions or a more dovish Fed stance.
The broader market context remains complex, with central bank buying and physical demand providing a floor under gold prices, but the dollar's strength and real yields continuing to exert downward pressure.