Gold prices continued their decline for a third straight week, pressured by a hawkish Federal Reserve stance and initial reports of a US-Iran peace agreement. According to FX Street, gold (XAU/USD) traded near $4,157 after earlier touching a one-week low of $4,121 on Friday, marking a three-week losing streak.
The US Dollar strengthened to a one-year high, with the US Dollar index rising amid the Fed’s hawkish hold and a record shift in its dot plot. FX Street cited MUFG’s Derek Halpenny, who noted the dollar’s gains following this aggressive Fed outlook. The euro/dollar pair (EUR/USD) also extended losses in response to the dollar’s strength.
For Japanese investors, these movements highlight the ongoing impact of US monetary policy and geopolitical developments on precious metals and currency markets, crucial factors for portfolio and risk management amid global uncertainty.