Gold retreats on better risk appetite, Fed easing bets to limit downside

5 Ağustos 2025

Market comments on behalf of Van Ha Trinh, Financial Markets Strategist at Exness

Gold prices paused their advance after three consecutive sessions of gains and slid on Tuesday. The metal could come under pressure against a more stable dollar, although it could remain supported by increasingly dovish monetary policy expectations. At the same time, risk appetite improved after an initial flight to safety on Friday, adding to the risks for gold.

After last Friday’s disappointing US jobs report and previous months’ figures revision, markets see three interest rate cuts this year. San Francisco Fed President Mary Daly echoed this sentiment on Monday, stating that the time for rate cuts is approaching. A more aggressive interest rate cut pace could bolster gold, which has been trading within a range for the last few months.

Looking forward, investors could continue to monitor US economic data for hints on the direction of the economy, in particular for a slowdown in the job market. Attention could also turn to the expected replacement of Federal Reserve Governor Adriana Kugler and the impact on monetary policy.

Zaid Barem / ymm