Gold shows weekly decline amid strengthening dollar and escalating Middle East war
Kyiv • UNN
Global gold prices recorded weekly losses of 3.7% for the first time in a month due to the rising dollar and revised Fed forecasts. Investors are using gold assets for liquidity amid the stock market collapse.
Global gold prices recorded weekly losses for the first time in over a month, pressured by the sharp rise in the US dollar and revised forecasts for Fed interest rates. Despite its "safe haven" status, the precious metal's quotes fell by 3.7% over the week, as investors began to use gold assets to obtain liquidity amid the collapse of stock markets. This is reported by Bloomberg, writes UNN.
Details
Tehran's missile strikes on oil refineries in Bahrain and the de facto closure of the Strait of Hormuz led to the largest weekly increase in oil prices since 2022.
This forced traders to revise expectations for easing US monetary policy, which automatically made the dollar more attractive than gold. An additional pressure factor was the news about the possible sale of part of gold reserves by central banks, particularly Poland, to finance defense spending of $13 billion.
Current quotes and market expectations
As of Friday morning, the spot price of gold stabilized at $5,090.32 per ounce, showing a slight rebound after a deep fall on Thursday.
At the same time, silver, platinum, and palladium also showed moderate growth at the beginning of trading in Singapore. Analysts note that the market remains extremely volatile due to the unpredictability of the Donald Trump administration's actions.