Gold dips from two-week high as US Dollar stabilizes

Gold retreats from two-week high amid US Dollar rebound and fiscal concerns

Gold prices (XAU/USD) pulled back on Thursday during the North American session, falling to around $3,310 after earlier touching a two-week high near $3,345. The decline came as the US Dollar recovered from recent lows, reducing investor appetite for the non-yielding yellow metal.

The US Dollar Index (DXY), which tracks the greenback against a basket of major currencies, stabilized around 99.70, limiting further upside for gold. A stronger dollar typically makes gold more expensive for foreign investors, putting pressure on prices.

Despite the pullback, ongoing concerns about the expanding US fiscal deficit continue to support the broader bullish outlook for gold. Additionally, geopolitical tensions, including US President Donald Trump's comments that Russia is unlikely to end the war in Ukraine, have added to global uncertainty, keeping demand for safe-haven assets like gold relatively firm.