Source: Reuters (via feed)
Gold prices were broadly steady on Wednesday after a decline of more than 1% in the previous session. The dollar maintained its recent strength, exerting pressure on gold prices. This rise in the greenback made dollar-priced metals costlier for buyers overseas.
Meanwhile, the stable gold price indicated limited trading activity following the recent fall. Investors remained cautious as currency moves influenced commodity markets. Despite this, the gold market saw little change in direction on Wednesday.
The dollar’s role remained significant, with stronger currency values typically weighing on metals priced in the greenback. This dynamic affected global demand for gold, which is often bought as a hedge or store of value.
In addition, broader market factors did not lead to notable shifts in pricing on this day. Therefore, gold trading continued in a narrow range as participants awaited clearer signals.
Dollar strength generally reduces demand for gold by increasing its price overseas, affecting international trade in the metal.
