Gold recovers on US dollar’s correction

A slight pullback in the USD Index coincided with an effort at a recovery in the gold price, which scaled to close to $1,994.60. It would not be reasonable to view Gold’s upward trend as a reversal given the strong odds on another Fed rate hike.

The Fed’s Beige Book will give hints about the 12 Fed districts’ present economic situation. After striking an eight-day low of $1,981.02 late on Monday, the price of gold has since shown signs of recovery.

After a slight correction in the US Dollar Index, the precious metal has recovered to be close to $1,996.00. Since the odds of another rate hike from the Federal Reserve (Fed) are very strong, it would not be justified to view the recovery move as a reversal.