Do American interest stabilization expectations negatively affect gold prices?

Gold decreased for the first time in 9 weeks with the increase in the strength of the dollar and the uncertainty about the trends of the Federal Reserve (the US Central Bank), according to the American FX Empire platform.

Why the gold price declined?

Gold prices recorded its first weekly decrease in nine weeks under pressure from the US dollar rising, changing the expectations of the Federal Reserve, and investors warned about global trade tensions.
While the long -term ups of gold remains strong, short -term feelings have turned into a declining as traders adapt to advanced economic risks and the central bank policy.

Gold price in 2025

Last week, gold settled at $ 2,858.14 an ounce, a decrease of $ 78.12, with a negative decline of 2.66%.
The Federal Reserve remains a dominant force in the movements of gold prices, as traders closely track its response to inflation data.
Also read: Why are gold prices to fluctuate severely … and what are the precious metal expectations?
The BCE personal expenses, which is the preferred inflation scale of the Federal Reserve, increased by 0.3% in January, in line with expectations.
The basic personal consumption expenditures index that excludes the prices of food and volatile energy increased by 2.6% on an annual basis, which is slightly lower than 2.7% in December.
This data has strengthened expectations that the Federal Reserve may postpone the reduction in interest rates, which is an inaccurate and ineffective scenario for gold.

American interest expectations

Futures markets still expect 79% possibilities to reduce interest rates in June, but policy makers remain careful and do not provide any clear signals to imminently reduce monetary policy.
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The high interest rates for a longer period reduce the attractiveness of gold as a non -revenue origin, which presses the prices for a decrease.

Trade, dollar and gold warfare

The escalating trade tensions added to the suffering of gold, but instead of strengthening the demand for a safe haven for gold, the uncertainty of investors to the dollar.
US President Donald Trump confirmed that customs duties by 25% on Mexican and Canadian goods will enter into force in March, along with an additional 10% fees on Chinese imports.

The power of the US dollar

Instead of stimulating gold flows, the state of uncertainty reinforced the dollar’s strength, as investors seek stability.
The dollar index rose by 0.9% last week, recording the highest level in two weeks, making gold more expensive for foreign buyers and the heaviest demand.
Historically, commercial conflicts tend to support gold prices, but this time the market preferred cash and dollar instead of metal.

Gold prices movements

The rise in gold prices recently led to $ 2956.31 to its highest level ever to a wave of profit.
Despite the decline in gold, the long -term ups of gold are still existing. The demand continues by the central banks in addition to the risks of continuous inflation and the inception of geopolitical certainty in providing a strong price for prices.
However, in the near term, the opposite winds caused by the power of the dollar may limit the Federal Reserve and the Monules of Continuous profits of the capabilities of the rise.