Gold beaten back by stronger US dollar

The price of gold returns back to flat on the day in what has been a correction of this week’s rally into daily resistance near $1,730. The price fell from a high of $1,725.60 to a low of $1,706.95 but held above the prior day’s lows despite firmer US yields and a stronger US dollar.

gold is trading at $1712.40 an ounce at the time of writing. Overall, the precious metal has been more robust of late, making its way back into the $1,700’s this week, recovering from last month’s lows that were made as US bond yields surged to multi-year highs.

The sentiment surrounding the Fed has been the major driver, as fickle as it is. However, with data ebbing and flowing in and out of the inflationary territory, and gold has been able to benefit at times of less hawkish speculation surrounding the Fed’s next moves with participants betting on a pivot at the start of the week.

However dovish hopes were dashed following the OPEC+ announcement of big oil production cuts to support oil prices, thereby sending other commodity prices, such as lumber higher