FX.co ★ Gold Rally Cools Amidst The Dollar's Vigor

Prices of the yellow metal remained muted on Wednesday amidst a renewed strength in the U.S. dollar. Indications of persisting consumer resilience revealed in the latest Retail Sales data from the U.S. lifted the dollar higher.

The Dollar strengthened in the backdrop of the U.S. Retail Sales reading for May being revised higher. The revision triggered speculation over whether the euphoria over a Fed pause or pivot was actually warranted.

The Dollar Index (DXY), a measure of the Dollar's relative strength against a basket of six currencies has increased 0.30 percent overnight to 100.24. The day's range was between a low of 99.92 and a high of 100.31.

Monetary policy decisions by the Federal Reserve, the European Central Bank and the Bank of England are due in the coming weeks, which added to the bearish sentiment for the yellow metal.

The CME FedWatch tool currently shows a 99.8 percent probability for a rate hike of 25 basis points in the review due on July 26. A 14 percent probability is however seen for another rate hike in September.

Gold Futures for August settlement has edged 0.01 percent higher to trade at $1,980.95. The day's trading range has been between $1,975.05 and $1,984.55.

Spot Gold shed 0.08 percent to trade at $1,977.21 per troy ounce. The day's trading range has been between $1,971.67 and $1,981.01.