Gold declines from a 3-week peak as the dollar rises and profits are taken
Gold prices fell by more than 1.5% on Tuesday, abandoning their highest level in 3 weeks, under pressure from the rise in the dollar, and profit-taking from previous sessions, while traders continue to evaluate the effects of the new tariffs that US President Donald Trump intends to impose on all of Washington’s trading partners.Nuclear talks on Thursday in Geneva, amid growing concerns about the risk of a military conflict between the two sides.
On the monetary policy front, outgoing Federal Reserve Chairman in Atlanta, Rafael Bostic, told the agency "Reuters" The United States may enter a period of structurally higher unemployment rates as companies adopt artificial intelligence to reduce employment, a shift that the Federal Reserve may not be able to counter by lowering interest rates.
It is traditionally known that gold prices tend to flourish in a low interest rate environment, which seems unlikely at least until next June, according to Federal Reserve reports.
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