GOLD Prices Dip After Three-Day Rally Amidst Dollar Rebound

After a stellar performance with three consecutive daily gains and reaching new 2023 highs above 2050 per ounce troy, gold prices corrected lower. Despite this, the precious metal found initial support near 2000 on Friday, indicating positive sentiment in the market.

The downward trend was triggered by the rebound in the US dollar, which had previously reached new 2023 lows in the 100.80/75 range. Additionally, the moderated bounce in US yields across the curve also contributed to the retracement. Nevertheless, investors still anticipate a 25 bps rate hike by the Fed at the May 3 gathering, with a probability hovering around 80%, up from around 40% just a month ago, according to CME Group’s FedWatch Tool.

Overall, despite the corrective drop, gold remains a valuable asset with strong potential for further value appreciation.