Gold Price Trends: US Dollar, Geopolitics, and Interest Rates
- Dollar strengthened and geopolitical tensions between the United States and Iran intensified, reversing earlier gains driven by expectations of lower interest rates.
- Spot gold fell 0.6% to $3,285.10 per ounce by 14:30 GMT, while U.S.
- The dollar index, which measures the greenback against a basket of six major currencies, rose 0.4% to 102.80, reaching its highest level in over a month.
Gold prices declined on Friday as the U.S. Dollar strengthened and geopolitical tensions between the United States and Iran intensified, reversing earlier gains driven by expectations of lower interest rates.
Spot gold fell 0.6% to $3,285.10 per ounce by 14:30 GMT, while U.S. Gold futures slipped 0.5% to $3,298.20, according to market data cited by CNBC عربية and other regional financial outlets. The retreat came despite ongoing speculation that the U.S. Federal Reserve may cut interest rates later in the year, a factor that typically supports non-yielding assets like gold.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.4% to 102.80, reaching its highest level in over a month. A stronger dollar makes gold more expensive for holders of other currencies, dampening demand even when macroeconomic conditions appear favorable for the metal.