Gold holds above $3,750 amid Dollar strength and Fed caution

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Gold prices edged up in early Thursday trading, hovering just above the $3,750 level as the European session got underway. The precious metal remains supported by strong safe-haven demand, with geopolitical tensions still elevated in Eastern Europe and the Middle East, and economic uncertainty fuelled by questions over the impact of tariffs and fears of a return of inflation. On the other hand, the recent rebound in the US dollar has created a headwind for gold. Comments from senior Federal Reserve officials have struck a more cautious tone, tempering expectations of aggressive rate cuts by the central bank — a dynamic that has seen the greenback recover some of its recent losses and capped further upside for the metal. Against this backdrop, traders will be closely watching public remarks from Fed policymakers, as well as the release of key US economic data, including GDP and PCE inflation figures, which will provide important clues on the state of the world’s largest economy and could influence the outlook for the Federal Reserve’s monetary policy.

Gold holds above $3,750 amid Dollar strength and Fed caution

Source: ActivTrader

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