Gold in a week .. a sharp decline in prices with the rise of the dollar

The last week witnessed the decrease in gold prices in futures contracts sharply, at the end of yesterday, on Thursday, by 2.9% to 3210 dollars an ounce, recording the lowest level in more than two weeks, to continue to decrease the third session.
Gold was affected by optimism about possible commercial agreements announced by the United States with countries such as India and Japan, as well as the dollar’s rise by 0.8% and liquidity lack due to a holiday in China.
Two days ago, the price of gold recorded a decline to about 3,245 dollars per 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.

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%.
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.