Dollar Surge Weighs on Gold’s Rally
Towards the end of last week, spot gold has moved lower and is on track to record a second straight weekly decline. The downturn is largely linked to a sharp rise in the U.S. Dollar Index, which climbed to its strongest level since May 2025. A stronger dollar typically weighs on gold prices because the metal becomes more expensive for buyers using foreign currencies. Concerns about inflation tied to the escalating tensions between Iran and the United States, along with expectations that the Federal Reserve could delay its first interest rate cut of the year until at least Q3, have also provided support for the dollar while limiting gold’s upside. Although gold’s broader outlook still appears positive, the…