Gold prices rebounded during the September 8 session as the U.S. dollar eased, making the metal cheaper for holders of other currencies. The advance was limited, however, by the risk that the Federal Reserve could still raise interest rates, which would increase the opportunity cost of holding non-yielding gold.
The pull in two directions matters because it shows the metal caught between a weaker dollar, normally a tailwind, and a rate outlook that isn't yet settled. Separately, the Motley Fool flagged that interest rates have been trending higher, a trend investors are watching closely across asset classes.
What's unresolved is which force wins out: further dollar weakness that lifts gold, or a Fed decision to hike that would pressure it lower.