After a recent record surge, gold prices have started to decline, losing $60 per troy ounce. Currently, this precious metal is trading at $3,646.17 per troy ounce, which is approximately $117.6 per gram.
This is reported by Finway
Impact of U.S. Monetary Policy on Market Dynamics
Experts note that the correction in gold prices is linked to investor caution regarding the future policies of the U.S. Federal Reserve. Traders expect that the Fed will lower the key interest rate two more times in 2025, which could lead to a loosening of monetary policy. These expectations have been one of the main factors behind the 38% increase in gold prices since the beginning of the year.
Increase in Demand for Safe Assets
In addition to the actions of the Fed, high demand for gold is supported by concerns over potential geopolitical conflicts and the impact of U.S. President Donald Trump’s trade policy. Investors view gold as a reliable tool for capital preservation amid global economic uncertainty.
Gold falls after a new record. Metal prices are restrained by traders’ caution regarding the upcoming rate cuts by the U.S. Federal Reserve and the strengthening dollar.
At the same time, amid the correction in gold prices, other precious metals are showing growth. In particular, prices for silver, platinum, and palladium have increased, indicating a broad interest among investors in defensive assets.