Gold Prices Drift as Traders Weigh Federal Reserve Minutes Against Geopolitical Risk

The Dollar Headwind

The US Dollar Index (DXY) hit a two-week high this morning, pressuring non-yielding assets. Investors are recalibrating interest rate expectations, anticipating that the Federal Reserve will maintain higher rates for longer to combat sticky service-sector inflation.

Technical Support

Technicians note that gold is currently testing its 50-day moving average. While the short-term trend is bearish, significant physical buying from Asian retail markets—reopening after the holiday—is preventing a deeper slide below $4,950.