In Asian trade, Gold slipped as the dollar rallied this week, a scenario that typically pushes the yellow metal higher for holders of non‑USD currencies. XM analyst Raffi Boyadjian noted that a stronger dollar makes the dollar‑denominated metal more expensive, dampening demand.

The prospect of a Fed rate hike in September has also re‑entered the conversation. Higher interest rates tend to weigh on non‑yielding assets like gold, adding pressure to its price. Spot gold fell 0.15% to $4,043.12 per troy ounce, reflecting the combined impact of currency strength and monetary policy expectations.

Market participants are watching the dollar’s trajectory closely, as any further appreciation could keep gold under pressure. Meanwhile, the Fed’s policy path remains a key variable, with September’s decision likely to set the tone for the rest of the year.

Overall, the interplay between a robust dollar and potential rate hikes is shaping a cautious outlook for gold in the near term.