The price of gold falls to the lowest level in two weeks, with the rise of the dollar

The price of gold continued to decline to about 3,245 dollars an ounce, recording its lowest level in about two weeks, in light of the decline in trade tensions between the United States and China, and the high demand for the US dollar, according to the FXSTREET platform.

The demand for risk presses gold

Indicators indicate an improvement in the demand for high risk assets, after US President Donald Trump signed an executive order to reduce customs duties on imported auto parts, giving car manufacturers two years to enhance their local production.
US Treasury Secretary, Scott Besent, confirmed that the offers submitted by commercial partners are “very good”, which strengthened optimism in the markets.
Also read: Why is gold a good safe haven yet despite its high prices?

Opening customs agreements

For his part, American commercial actor Jimson Jarir said on Wednesday evening that the Trump administration expects to reach preliminary agreements on customs duties with a number of commercial partners within a few weeks.

The height of the dollar presses gold

The increasing optimism about reducing the commercial escalation contributed to enhancing the performance of the US dollar, which led to a decline in demand for gold as a safe origin, as the high value of the dollar makes gold more expensive for other currencies.

Federal reserve and interest reduction risk

At the same time, the markets of the market have reduced the possible reduction in interest rates by the American Federal Reserve from the severity of gold losses, especially after the issuance of weak American economic data.
The data of the Ministry of Commerce showed the contraction of the American economy by 0.3%during the first quarter of 2025, compared to estimates of 0.4%, and a previous reading indicating growth of 2.4%.
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The futures contracts indicate that the federal may begin to reduce interest rates next June, with a weighting of four discounts by a quarter of a percentage point, bringing the interest to a range of 3.25% – 3.50% by the end of the year.

Take American recruitment data

Investors are awaiting US job data for April, expected to be released on Friday, in search of new indicators that support monetary policy trends.
It is expected that the non -agricultural job report (NFP) is expected to add about 130,000 jobs during April, while the unemployment rate is likely to settle at 4.2%.

Reports on Chinese customs exemptions pressing gold

The pressure on gold prices increased after reports indicating that China is considering exempting some American imports from customs duties of 125%, in a move that reflects Beijing’s impact on the repercussions of the trade war with Washington.
Bloomberg reported that the Chinese Ministry of Commerce asked companies to provide lists of difficulty commodities, as part of an internal evaluation of the exemptions qualified.

Analysts: Reducing commercial escalation reduces the attractiveness of gold

In this context, analyst Yip John Rong of IG said that “the signals of reducing commercial escalation pressure the demand for safe assets such as gold, and increase its cost for foreign currency holders.”