Gold Faces Headwinds From High Rates and a Strong Dollar

Lower oil prices could support resilient consumption, which would benefit risk assets. According to Jin10, gold and the Japanese yen still face pressure from high interest rates and a strong U.S. dollar. The report said gold is constrained by three factors: high rates, a strong dollar, and carry trades driven by interest-rate differentials. It added that each short, pulse-like rebound in gold has encountered resistance to some degree under these conditions.