Gold Remains Firm Near Weekly High as US Dollar Loses Momentum

Gold prices stayed close to a one-week high, with spot gold holding around 4,841.76 and June futures rising 0.3% to 4,866.50, as the market paused after a strong earlier rally. Rather than pushing sharply higher, bullion moved into a more cautious phase as traders waited to see whether fresh US-Iran diplomacy could ease tensions in a more lasting way.

Support is still coming mainly from the currency side. The US dollar remained near its weakest level in more than a month, which made gold more attractive for buyers using other currencies. That helped bullion remain firm even as broader markets turned slightly more positive, with equities moving higher and oil pulling back on hopes that talks in Pakistan could reduce some of the immediate pressure around the conflict.

At the same time, the outlook is not fully bullish. Traders have become a little more confident that the Federal Reserve could cut rates this year, with markets now pricing around a 30% to 33% chance of one 25-basis-point cut, up from roughly 13% last week.

Even so, that is still far below the earlier expectation for two cuts before the war changed the inflation outlook. This leaves gold supported, but without a strong enough catalyst to break decisively higher.

For now, gold is holding steady between softer dollar support and lingering uncertainty over inflation, Fed policy, and the direction of US-Iran talks. As long as the dollar stays weak and diplomacy keeps oil from rising sharply again, bullion may continue to trade near the upper end of the 4,800 range.

Discover how a softer dollar and changing Fed expectations could drive gold’s next move.