Gold Treads Water as Dollar Strength Continues

Gold prices have reached their highest level since May 14, but the metal is consolidating below $4,650 after briefly touching the $4,700 area. This pause in rally comes as investors lock in profits following the intraday surge.

The US dollar remains strong due to concerns about inflation and interest rates. The Federal Reserve is seen increasing interest rates before the end of the year, with a 75% probability priced in by markets.

Geopolitical tensions in the Middle East are also bolstering demand for the dollar as a safe haven. Treasury Secretary Scott Bessent stated that the US is beginning a campaign to cut Iran off from the global economy and cautioned that any nation doing business with Iran could face US sanctions.