Gold at two-week low as dollar rises economy

Gold continued to decline today, Wednesday, and touched the lowest level in ⁠about two weeks, ⁠as the dollar rose amid growing expectations of a rise in US interest rates, while investors evaluated conflicting signals regarding the talks between the United States and Iran.

• Gold fell in spot transactions by 0.6% to $4,088 per ounce, after previously recording the lowest level since June 11.
• ⁠US gold futures for August delivery fell 1.1% to $4,103.7, at the time of writing.

US President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections “indefinitely,” but Tehran denied making any such concession during the negotiations, raising the question of whether the fragile agreement between the two sides had changed.

The two sides also disagreed over the details of a clause allowing Iran to access its funds frozen in external accounts.

“What we are seeing here is the evolution of war-induced pressures on gold,” said Ilya Spivak, Head of Global Macroeconomics at Tasty Live.

He added, “Inflation accompanying raising interest rates appeared in the decline in bond prices, the rise in bond yields, the rise of the dollar, and the decline of gold.”

The price of gold has fallen by about 23% since the outbreak of the American and Israeli war on Iran in late February, as rising inflationary pressures fueled expectations that the Federal Reserve (the Bank)
US Central Bank to raise interest rates.

The dollar is rebounding

While gold is traditionally seen as a hedge against inflation, it loses its appeal as a non-yielding asset when interest rates rise.

The dollar recorded its highest level in more than a year, which increased the cost of gold for buyers who hold other currencies.

The dollar index – which measures the performance of the US currency against a basket of currencies that includes the yen and the euro – rose to 101.4 points, its strongest level since May 13, 2025.

“The US dollar remains the safe haven of choice,” National Australia Bank head of FX research Ray Attrill said.

The CME Group’s Fed Watch tool indicates that traders expect three interest rate increases from the Federal Reserve this year, compared to the expectation of one increase before the Council’s meeting last week.

Investors are awaiting the release of personal consumption expenditures data in the United States, which is the Reserve Board’s preferred standard for measuring inflation, scheduled for release tomorrow, Thursday, to obtain additional indicators regarding policy.
Cash.

As for other precious metals:

• Silver in spot transactions fell 1.6% to $61 per ounce.
• Platinum fell 1.2% to $1,632.04.
• Palladium fell 1% to $1,225.35.