By Fadi Al Kurdi

Gold experienced a second consecutive decline in reaction to a strong sentiment surrounding the U.S. dollar. Anticipation of expansionary policies from Donald Trump has kept the dollar near a four-month peak, weighing on the precious metal. With the greenback strengthening, gold could remain under pressure.

This week, market participants’ attention shifts to U.S. inflation data and upcoming Federal Reserve speeches, notably remarks from Fed Chair Powell. These events could be critical in assessing the trajectory of interest rates, particularly with expectations surrounding Trump’s second term. Changes in the interest rate outlook could impact gold demand, leading to near-term volatility.

There is also growing speculation that the Federal Reserve may adopt a more cautious approach to rate cuts in response to Trump’s proposed policies, which include increased tariffs, tax cuts, and deregulation. In the medium to long term, however, gold could remain well-positioned as a safe-haven asset, given the potential uncertainties arising from trade tensions and geopolitical tensions.

Al Kurdi founder CEO FFA Kings