Gold prices (XAU/USD) are back on the rise, trading above $2,400 in the American session on Monday after a brief correction from last Thursday’s seven-week peak of $2,424. This uptick follows a retreat of the US Dollar (USD), which lost its intraday gains due to the aftermath of an assassination attempt on former President Donald Trump.
The attack has seemingly boosted Trump’s chances in the upcoming presidential elections, prompting a rush of investment into the US Dollar. Trump’s advocacy for protective trade policies typically supports the Greenback. Consequently, the US Dollar Index (DXY), which measures the dollar’s value against six major currencies, has established a solid footing around 104.00.
Despite the initial dollar strength, the greenback has retreated as concerns grow about its near-term outlook, especially with increasing speculation that the Federal Reserve (Fed) may start cutting interest rates as early as September. This anticipated monetary easing could alleviate some of the pressure on gold prices, making them more attractive to investors.
