Gold moderates lower as stronger US Dollar weighs
Gold pulls back on Wednesday as a result of a stronger US Dollar.
The Greenback is rising due to less dovish interest rate expectations in the US.
XAU/USD starts a new short-term uptrend on the 4-hour chart.
Gold (XAU/USD) pauses its recovery and pulls back into the $2,620s on Wednesday due mostly to the effect of a stronger US Dollar (USD). Since Gold is mainly priced and traded in USD, this automatically has the effect of lowering its price even though all other things being equal.
Gold stalls in the middle of recovery
Gold recovered from eight-week lows in the $2,530s at the beginning of the week as a result of increased safe-haven flows. This came on the back of a ratcheting up of geopolitical tensions after Russia amended its conditions for using its nuclear armaments. The move was interpreted as a warning to Ukraine and its allies following the decision of US President Joe Biden to allow Ukraine to use US-made long-range ATACMS (Army Tactical Missile System) missiles to strike targets in Russia.
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