Gold Prices Fall for the Second Consecutive Day, Closing the First Week of the Year in Negative Territory as Investors Take Profit

‘Gold Prices’ Fall for the Second Consecutive Day, Closing the First Week of the Year in Negative Territory as Investors Take Profit

Global gold prices have continued to decline for the second consecutive day, dropping by 0.6% to $2,860 per ounce. This marks the first weekly loss of the year after gold had previously reached an all-time high of $2,956.19 per ounce on February 24, 2025.

Two Key Factors Pressuring Gold Prices
1. Concerns Over Donald Trump’s Tax Policies

Investors are closely monitoring the U.S. import tariff hikes, as Trump is set to raise tariffs on imports from Canada and Mexico on March 4, 2025. Additionally, he plans to increase tariffs on Chinese goods by another 10%, which has driven demand for the U.S. dollar and put downward pressure on gold prices.

2. Stronger U.S. Dollar Weighing on Gold Demand

The appreciation of the U.S. dollar has made gold more expensive in other currencies, leading foreign investors to slow down their gold purchases.

The Bloomberg Dollar Spot Index, which measures the strength of the U.S. dollar, increased by 0.1% today.
Yesterday, the index surged by as much as 0.6%, further strengthening the dollar.
These pressures have led investors to take profits, causing gold prices to decline, despite their previous upward trend.