All articles tagged with #dollar
Gold edged higher in early trading but remains on track for roughly a 14.6% monthly decline—the steepest since Oct 2008—as the U.S.-Iran conflict sustains risk sentiment and a firmer dollar; Goldman Sachs still sees upside over the longer term, forecasting around $5,400/oz by end-2026 amid ongoing central-bank diversification.
Gold prices have fallen about 25% from late January highs, with silver down roughly 50% from its peak, as higher US Treasury yields and a stronger dollar attract liquidity away from non-yielding metals despite ongoing Iran-related energy concerns. The unwinding of leveraged futures/ETF positions, along with rising inflation expectations and higher oil prices, has reduced appetite for gold, while industrial demand provides only partial support for silver.
The U.S. dollar holds near a multi‑month high as fears of a prolonged Middle East war push oil prices higher, pushing the yen past 160 per dollar and fueling intervention jitters while markets weigh inflation and the risk of tighter policy amid stagflation concerns.
The piece revisits the 1973–74 and 1978–79 oil shocks that upended inflation and reshaped global finance, then considers whether today’s Iran conflict could trigger a similar disruption. While the US is now a net energy exporter and the dollar remains dominant, the ultimate impact hinges on how long the conflict lasts and how much oil flows are disrupted. The episode could accelerate shifts in energy policy, deepen the role of oil producers’ sovereign wealth funds, and alter global money flows in ways that echo the 70s, even as the current dynamics differ.
Gold prices have fallen as gold’s traditional hedge against a stronger dollar wanes amid tighter financial conditions and position unwinds. Goldman Sachs argues crude is the lead driver for markets, lifting near‑term oil forecasts after disruptions in the Strait of Hormuz, withOil near 110 (XBR/USD) in the near term and 2026 forecasts of Brent around 85 and WTI around 79. The pullback in gold is not seen as a lasting shift in the long‑term thesis; instead, it’s viewed as a potential buying opportunity for long‑term investors, albeit with near‑term volatility likely as derivatives moves and energy-price dynamics play out.
Gold slipped about 21% from its January peak and moved into bear market territory as the dollar strengthened and investors took profits, but veterans see the drop as a short-term swing within a longer bullish trend supported by ongoing geopolitical risk and central-bank demand. Strategists cited targets around $6,000 by year-end and $10,000 by the end of the decade, with a weaker dollar potentially helping a rebound and technical support near $4,100.
Gold extended losses into bear-market territory as a stronger dollar and higher 10-year yields reduced bullion demand, with spot around $4,405/oz and April futures near $4,359. The drop surpasses a 21% fall from January’s record high, as investors unwind positions and reassess Fed policy expectations; analysts see the move as a natural correction after a rally driven by uncertainty, while longer‑term drivers like geopolitical risk and central-bank demand underpin a still-bullish longer-term case.
Gold futures rose briefly on Friday but were on track for their third straight weekly decline, pressured by higher energy costs, hawkish signals from the Federal Reserve, and a stronger U.S. dollar that makes non-yielding bullion less attractive.
Gold edged up in European trading but remains on track for a deep weekly loss as the Iran conflict raises inflation worries and dents bets on near-term rate cuts; spot gold around $4,657/oz and futures near $4,658/oz, with the week’s decline about 8% as the dollar weakens and energy price pressures cloud central bank policy.
Gold slid for a sixth straight session to around $4,869/oz as a surge in energy prices and hotter inflation dimmed expectations for Federal Reserve rate cuts this year. Oil rose on Middle East risk, risk assets softened and the dollar strengthened, helping push bullion lower despite a-year-to-date gains of more than 10%. Traders expect the Fed to keep rates unchanged at its upcoming meeting, with longer-term gold support coming from inflation concerns and stagflation fears.
Gold stayed near $5,000 an ounce on Tuesday (spot about $5,001.36, US futures around $5,005.20) as the Iran war entered its 18th day. Analysts say the flat move reflects a stronger dollar, expectations the Federal Reserve may pause or raise rates, and gold’s already elevated level earlier this year, along with higher oil prices that could heighten inflation and keep dollar assets attractive. Some observers also note gold is behaving more like a speculative asset than a hedge amid the volatility.
Silver slips as crude oil rallies above $100, lifting inflation fears and pushing Fed rate-cut expectations toward September; higher yields and a stronger dollar are prompting traders to trim long silver positions ahead of possible rate relief.
Gold has largely held its ground despite ongoing Middle East tensions, trading in a narrow band around $5,050–$5,200 as a stronger dollar and higher yields temper safe-haven demand. Inflation risks from higher oil prices and potential rate hikes, plus occasional liquidity selling, help explain the muted move even as banks remain bullish with year-end targets near $6,000–$6,300.
Global stocks slipped as oil prices swung on Middle East tensions, with Brent near $89 a barrel and the dollar strengthening as inflation risks and growth concerns persisted; European indices fell while U.S. futures were flat, and traders eyed possible large oil-reserve releases and signs of strain in private credit amid AI disruption.
Gold rose about 0.4% to around $5,096 per ounce as softer U.S. payrolls kept hopes for a Federal Reserve rate cut alive, but a stronger dollar and ongoing Middle East tensions capped gains and left bullion on track for its first weekly decline in five weeks. U.S. futures for April rose to about $5,105/oz, payrolls fell 92,000 with the unemployment rate at 4.4%, and markets await the Fed’s March 18 decision with a July cut widely anticipated.