Weaker US Dollar benefits Gold price

The US Dollar (USD) drops to its lowest level since February 14 amid expectations that the Federal Reserve (Fed) will soften its hawkish stance. Moreover, the collapse of two mid-size banks in the United States (US) - Silicon Valley Bank and Signature Bank - fueled speculations that the Fed might cut interest rates during the second half of the year. This drags the USD lower for the fourth straight day and turns out to be a key factor lending some support to the US Dollar-denominated Gold price. That said, a combination of factors might keep a lid on any meaningful upside and warrants some caution for bullish traders.