Gold prices are falling sharply on Monday amid the strengthening of the U.S. dollar against major global currencies and a shift in expectations regarding the Federal Reserve’s monetary policy. As of 9:25 a.m., April gold futures on the Comex exchange fell 9.7% to $4,131 per ounce. This is the lowest level since November 2026.
Pressure on the market is coming from the dollar’s rise, as well as growing fears that the Fed may abandon plans to cut rates or even raise them by year-end if inflation accelerates. According to CME FedWatch, traders estimate the probability of a 25-basis-point rate hike at nearly 36%.
A strong dollar traditionally reduces gold’s appeal to investors using other currencies, as it makes the metal more expensive when purchased outside the U.S.
Gold is important to the global financial system as a safe-haven asset, a savings instrument, and a component of central banks’ international reserves. It is also significant for industry due to its use in electronics, medicine, and high-precision technologies.
Earlier, the Experts Club analytical center presented an analysis of the world’s leading gold-producing countries in a video on its YouTube channel — https://youtube.com/shorts/DWbzJ1e2tJc?si=BywddHO-JFWFqUFA
