Gold prices dropped to a three-week low as rising oil prices and stronger U.S. Treasury yields reduced the appeal of the precious metal. Although geopolitical tensions remain high, expectations of prolonged high interest rates are pushing investors away from non-yielding assets like gold.

In forex trading, the U.S. dollar continued to gain momentum, supported by inflation concerns and central bank expectations. The market is increasingly pricing in a “higher-for-longer” rate environment, which is strengthening the dollar against major currencies.

Trump’s geopolitical stance, particularly regarding Iran, continues to influence market direction. While conflicts typically support gold as a safe haven, the current environment shows that monetary policy is outweighing geopolitical demand, creating unusual pressure on precious metals.