Forex
Gold Slumps Despite Weaker Dollar Amid Rate Hike Bets
The price of Gold (XAU/USD) has fallen despite the weakening US Dollar. The US Dollar Index (DXY) is trading around 98.82, its lowest level in over two weeks. However, the Fed's expected rate hike is weighing on the precious metal.
Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike are pressuring Gold. West Texas Intermediate (WTI) has reached $91.30 per barrel, its highest level since June 8. The US Dollar struggles to gain traction despite hawkish Fed expectations.
The weaker US Dollar offers some support to Gold, but its near-term outlook remains challenging. Traders are paying greater attention to how higher Oil prices could affect inflation and interest rates.