What happened
Gold’s latest leg higher has tracked a softer dollar. Reuters reported fresh records with a weaker greenback and markets leaning toward a near-term rate cut. Broader analysis also highlights a notable drop in the dollar this year which improves purchasing power for overseas buyers.
Why this supports gold
When the dollar slips international buyers need fewer units of their home currency to acquire an ounce. That can unlock demand from Asia and Europe and keep momentum firm.
What to watch
Upcoming U.S. data and the September Fed decision can swing currency markets. If the dollar stays on the back foot gold’s bid should remain broad.
Client takeaway
Dollar softness is additive to every other driver. It makes diversification into bullion more affordable for global investors and supports sustained interest.
