25 June | Gold

Gold strengthens amid declining dollar and US Treasury yields

Gold strengthens amid declining dollar and US Treasury yields

According to Reuters, gold is gaining ground as the US dollar weakens and Treasury yields decline. Meanwhile, market participants continue to monitor the unstable situation in the Middle East.

On Wednesday, the price of the yellow metal rose by 0.2% after hitting a more than two-week low on Tuesday. The dollar index is at a weekly low, making gold more attractive to holders of other currencies. The yield on 10-year US Treasury bonds remains at its minimum level in over a month.

Further dollar weakness and renewed focus on the US fiscal deficit and tariff policy could boost gold's rally, says Kelvin Wong, senior analyst at OANDA.

As reported by Reuters, traders are anticipating a 60 basis point rate cut by the Federal Reserve in 2025, with the first move expected in September. Lower borrowing costs typically support precious metal prices.

According to a survey of 75 central banks conducted by OMFIF, one in three regulators plans to increase their gold reserves over the next 1–2 years, marking the highest level in the past five years.

Anton Volkov MarketCheese
Brent sell
Period: 22.08.2025 Expectation: 395 pips
Brent fluctuates amid fundamental uncertainty
15 August 2025 41
Period: 22.08.2025 Expectation: 1000 pips
0.9 level proved to be too high for AUDCAD buyers
15 August 2025 36
Period: 22.08.2025 Expectation: 500 pips
Spiking US inflation pushes SPX down
15 August 2025 30
Period: 15.08.2025 Expectation: 2000 pips
Selling AUDUSD with 0.6480 target
15 August 2025 22
Period: 22.08.2025 Expectation: 2085 pips
GBPUSD rises amid improved UK economic conditions
15 August 2025 27
Period: 21.08.2025 Expectation: 1455 pips
Selling USDJPY with 145 target amid growing expectations of BOJ rate hike
14 August 2025 52
Go to forecasts