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Stimulated by the Federal Reserve's hawkish policies, the dollar has strengthened, and the long positions in gold seem to be hesitating.
Gate News bot message, on Thursday during the Asian session, gold prices (XAU/USD) attracted some dip buying, recovering some of the losses from the previous day, falling to the 3363-3362 USD area, marking a weekly low. Against the backdrop of ongoing trade uncertainties and escalating geopolitical tensions in the Middle East, global risk sentiment remains fragile. This, in turn, is seen as a key factor driving safe-haven gold to rise.
At the same time, the Federal Reserve maintained interest rates at its two-day meeting that ended on Wednesday and hinted that future rate cuts would slow down, as the market is concerned that President Donald Trump’s tariff measures could drive up consumer prices. The tough stance pushed the dollar (USD) to a more than one-week high and kept non-yielding gold prices below $3400, warranting caution for bulls.