Gold Pressured by Dollar, But Declines Limited
Gold prices continued to decline on Tuesday, November 4, 2025, as demand for safe-haven assets waned and the US dollar (USD) strengthened, fueled by the Federal Reserve's (Fed) hawkish stance. Gold failed to maintain the psychological level above $4,000 and was pressured by renewed selling, although it managed to hold above the lows recorded in the previous session. However, mixed market conditions made some traders more cautious about aggressive bearish positions.
The US dollar, which strengthened for the fifth consecutive day, reached a new high since early August, fueled by the Fed's hawkish policy. This reduced the appeal of non-yielding gold, with many investors preferring the more lucrative US dollar. Gold was also affected by market sentiment indicating optimism regarding global financial conditions, further reducing demand for the yellow metal.
However, despite the pressure from the US dollar, the decline in gold prices was not too deep, as several fundamental factors limited losses. Economic uncertainty caused by the prolonged US government deadlock and global geopolitical tensions remains a factor supporting gold prices. Although global risk sentiment has improved, concerns about the impact of the US government deadlock and geopolitical tensions have supported gold, preventing a deeper decline.
Therefore, despite the potential for further declines, analysts advise remaining cautious and waiting for further confirmation before taking a more aggressive bearish position. Gold's future movement will be heavily influenced by geopolitical developments, Fed policy, and evolving market sentiment regarding global risks. (asd)
Source: Newsmaker.id
