2023.06.0813:32:00UTC+00Gold Prices Rebound Amidst Weak Dollar

Prices of the yellow metal rallied on Thursday amidst the Dollar's retreat.

The Dollar Index (DXY), a measure of the Dollar's relative strength against a basket of six currencies dropped 0.42 percent overnight to 103.66. The day's range was between a low of 103.57 and a high of 104.07. The Dollar's weakness supported the gains in the prices of the yellow metal.

The Dollar remained weak amidst mixed expectations regarding the Fed's monetary policy decision. The CME FedWatch tool currently shows a 70.2 percent probability for a pause and a 29.8 percent probability for a rate hike of 25 basis points in the review due on June 14.

Gold Futures for August settlement added 0.79 percent to trade at $1,973.85. The day's trading range has been between $1,955.30 and $1,974.85.

Spot Gold also added 1.06 percent to trade at $1,960.51 per troy ounce. The day's trading range has been between $1,940.01 and $1,960.62.

The unexpected rate hikes by the Reserve Bank of Australia and the Bank of Canada have once again turned the spotlight on monetary policy. Monetary policy decisions by the Federal Reserve, the European Central Bank and the Bank of England are due in the coming weeks. The CPI data from the U.S. is also due next week.