Published on 6/25/2026
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Last update: 11:23 (Mecca time)
Gold prices fell today, Thursday, to near their lowest levels in more than 7 months, under pressure from the rise of the US dollar and growing market bets on raising interest rates in the United States, at a time when investors are awaiting key inflation data that may determine the course of monetary policy during the coming period.
By 07:20 GMT, the price of gold in spot transactions fell by 0.4% to $3,983.20 per ounce, while US gold futures for August delivery fell 0.31% to $3,996.30.
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Yesterday, Wednesday, the yellow metal fell below the level of $4,000 per ounce for the first time since November 2023, declining by about 29% from its peak of $5,594.82 that it recorded on January 29.
Matt Simpson, chief analyst at StoneX, said: “Gold is currently witnessing a downward momentum in light of the strength of the dollar.”
This comes at a time when the rise in inflation in the United States, which was exacerbated by the repercussions of the war with Iran, in addition to the tightening of American monetary policy, has strengthened investors’ expectations of further raising interest rates.
According to the CME Group’s “Feed Watch” tool, the markets expect three increases in US interest rates during the current year, with a probability of approximately 67% to raise them next September.
Other precious metals:
- Silver fell 0.1% to $57.37 an ounce.
- Platinum fell 0.8% to $1,566.25.
- Palladium rose 0.4% to $1,171.25 per ounce, remaining close to its lowest level in 9 months.
The dollar is at its highest levels
The dollar maintained its strong gains, heading towards recording its largest monthly rise in nearly a year, supported by the strength of the US economy and the decline in interest rate bets.
The dollar index, which measures the performance of the US currency against a basket of major currencies, reached its highest level in 13 months at 101.8 points, while the dollar recorded its highest level in more than 4 decades against the Japanese yen at 161.73 yen.
The dollar also reached its highest level in 7 months against the British pound, and its highest level in 11 months against the Swiss franc.
The strength of the US currency increased the cost of gold for investors who hold other currencies, which increased pressure on the precious metal, and also briefly pushed the price of Bitcoin below $60,000 for the first time since 2024.
Investors are awaiting the release of core personal consumption expenditures data in the United States, the Federal Reserve’s preferred measure of inflation, for new indicators on monetary policy trends.
Japanese stocks rebound
On the other hand, Japanese stocks jumped, led by technology and artificial intelligence companies, after Micron Technology announced strong expectations for quarterly profits and revenues.
The Nikkei 225 index rose 3.72% to 71,754.53 points, while the Topix index rose 1.34%.
Micron said that customers committed to purchasing memory chips worth $22 billion, which prompted its stock to rise 12% in after-hours trading, which reflected positively on the shares of companies related to artificial intelligence.
SK Hynix shares rose by more than 11%, Advantest shares jumped by 11.8%, and Tokyo Electron shares rose by 7.9%.
On the other hand, the energy sector was under pressure as oil prices continued to decline, as the mining companies index fell by 3.2% and Inpex shares fell by 3.53%.
