Gold Prices Drop as Dollar Rises and Trade Tensions Ease

Gold Prices Drop as Dollar Rises and Trade Tensions Ease

- in Economy

Gold Prices Decline Amid Rising Dollar and Easing Trade Tensions

Gold prices saw a slight decrease on Monday, October 27, 2025, influenced by the strengthening of the US dollar and a relaxation of trade tensions between Washington and Beijing. Investors are closely watching important meetings of several central banks this week for new indicators regarding monetary policy trends.

In the spot market, the price of gold dropped by 0.5% to reach $4,092.76 per ounce, while December gold futures fell by 0.7% to settle at $4,106.80.

Other precious metals exhibited varied movements; silver decreased by 0.3% to $48.44, while platinum rose by 0.5% to $1,612.95, and palladium increased by 0.2% to $1,431.94.

The pressure on gold was due to the US dollar climbing to its highest level in over two weeks against the Japanese yen, making gold more expensive for holders of other currencies. Additionally, the easing of trade tensions between Washington and Beijing helped reduce market pressures after senior officials announced a “preliminary agreement” on a range of trade issues.

Markets are anticipating the Federal Reserve’s meeting on Wednesday, where a 25 basis point interest rate cut is widely expected, with close attention on the tone of the statement and future monetary policy guidance, which could directly impact gold prices globally and locally.

In the Moroccan market, gold prices today are recorded as follows:
– 24 Karat: 1,206.50 dirhams per gram
– 21 Karat: 1,055.50 dirhams per gram

Local gold prices directly affect investors and jewelers, as many rely on tracking movements of the yellow metal to determine the best timing for buying or selling.

Gold prices are expected to continue fluctuating in response to changes in the US dollar, developments in trade tensions, and decisions from central banks on monetary policy. Investors are advised to closely monitor these factors to mitigate risks and make informed investment decisions.

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