Precious metals market: strong dollar puts pressure on gold
According to trading data, the spot price of gold at the end of the week rose by about 1.4% to about $5149 per troy ounce, and gold futures in the United States closed at about $5158 per ounce. However, at the end of the week, the metal could still fall in price by about 2.4%, Reuters reports.
What affected the “gold” market
The main factor of pressure on the market was the growth of the dollar and the yield of U.S. government bonds. When the dollar strengthens, gold becomes more expensive for investors using other currencies. This reduces demand.
As Marketwatch notes, an additional impact was made by expectations on U.S. monetary policy. After the publication of weak employment data, investors began to admit the possibility of interest rate cuts by the Federal Reserve. This only temporarily supported gold prices.
Another factor is the war in the Middle East. The escalation of the conflict in the region has increased demand for protective assets, including gold, as investors are trying to reduce risks amid uncertainty in the financial markets.
At the same time, these events have contributed to higher oil prices and stronger inflation expectations, which affects interest rate forecasts and adds volatility to commodity markets.
Safe haven asset: status is maintained
Despite recent fluctuations, gold remains one of the fastest-growing assets in recent years. Analysts estimate that in 2026, the metal’s price is still well above the levels of previous years, with investor interest supported by geopolitical risks and inflation expectations. Now the strong dollar is putting pressure on quotations, but gold is still seen as a safe haven asset.
