Gold prices edged lower on Monday as the U.S. dollar gained strength, creating headwinds for the precious metal. A stronger dollar typically makes gold less attractive to investors holding other currencies.

Factors Influencing Gold Prices

Several factors are currently influencing gold prices:

• U.S. Dollar Strength: The dollar’s performance remains a key driver.
• Interest Rate Expectations: Anticipation of future interest rate hikes by the Federal Reserve can impact gold’s appeal.
• Economic Data: Upcoming economic data releases will be closely scrutinized for clues about the health of the U.S. economy.
• Geopolitical Risks: While not a primary driver currently, geopolitical uncertainty can provide support for gold as a safe-haven asset.

Analyst Commentary

Analysts suggest that gold prices may remain range-bound in the near term, with potential for volatility depending on upcoming economic news and policy announcements. Investors are advised to monitor these developments closely.