Stronger Dollar Sends Gold Futures Lower Amid Hawkish Fed Comments
Gold futures on Bursa Malaysia Derivatives closed lower on Tuesday due to a stronger US dollar. According to Quintex Intel global strategist Stephen Innes, hawkish comments from US Federal Reserve officials contributed to the firmer dollar.
Innes cited Chicago Fed President Austan Goolsbee's warning that supply shocks and strong spending could keep inflation persistent, making it harder for the Fed to reach its 2.0% inflation target.
The stronger dollar weighed on gold prices, which were also influenced by market optimism over the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping.
However, Innes noted that markets are still cautious about the potential for higher oil prices and inflation risks if diplomatic efforts with Iran fail to yield meaningful progress.