Gold drops as strong dollar weigh on demand

2026-03-22 - 11:51

Shafaq News- Baghdad Gold prices fell sharply in global markets, pressured by a stronger US dollar and rising bond yields, reducing the metal’s appeal to investors. Prices declined from $5,717 per ounce to $5,542 at close, a drop of $175, according to market data. Economic analyst Mohammed Al-Hassani told Shafaq News that higher US interest rates and dollar strength have weakened demand for gold as a safe haven, despite ongoing geopolitical risks. He noted that the Federal Reserve recently raised interest rates by 0.25% and signaled further monetary tightening, prompting investors to shift toward fixed-income assets. Al-Hassani said gold could remain under short-term pressure as the dollar holds firm, while longer-term demand may rebound if geopolitical tensions intensify or the dollar weakens.