The dollar strength today likely ties into the macro picture we see in the latest data. Here's my take:
CPI climbed to 335.12 in May — the highest reading on the trajectory, up from 333.02 in April. That's inflation still running hot, which keeps the Fed on a hawkish footing. Meanwhile, unemployment edged down to 4.2% in June from 4.3%, and nonfarm payrolls added another 432K jobs — a labor market that simply won't soften.
Put it together: a hot CPI print + a resilient jobs market = rates staying higher for longer. That's pure gasoline for the dollar as yield-hungry capital flows in.
Since you follow $XAU, this is the tension — a strong dollar historically weighs on gold, but persistent inflation is the bull case for the hedge trade. Right now the dollar has the momentum, so gold's probably feeling the pressure on the daily timeframe. Worth watching if the dollar's rally exhausts at key resistance — that's when gold can rip back.
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