Gold prices fell due to strong US dollar and geopolitical tensions, facing weekly loss
From Investing.com: 2025-03-03 02:30:00
Gold prices declined by 0.61% on Friday due to US inflation meeting market expectations, indicating the Federal Reserve may not adopt a dovish approach. Ongoing economic uncertainty from trade tariffs and geopolitical instability pushed the US Dollar Index higher, affecting XAU/USD. Wall Street indices weakened, impacting gold prices. XAU/USD had its first weekly loss since December 2024 but gained monthly due to concerns over Trump’s tariff plans. Focus on PMI data today could affect XAU/USD movement.
The euro lost 0.21% against the USD on Friday as the dollar strengthened amid geopolitical tensions and trade uncertainty. Optimism over a Russia-Ukraine peace deal waned after a heated discussion between Trump and Zelenskiy. ECB is expected to be more dovish than the Fed, influencing EUR/USD. Focus on eurozone CPI and US ISM PMI data today could lead to volatility in EUR/USD. Potential breakouts above 1.042300 or below 1.03595 may occur.
The Canadian dollar slightly weakened against the USD on Friday as investors awaited US trade tariff decisions. Canada’s GDP surpassed expectations, driven by consumer spending. Traders priced in potential tariffs, affecting USD/CAD. Meetings between Canadian officials and US administration could impact currency movement. Focus on US ISM PMI data today may affect USD/CAD. Tariffs implementation may lead to a sharp drop in USD/CAD, while cancelation could strengthen the CAD.
Read more at Investing.com: Gold Faces Weekly Loss as US Dollar Rises, but Geopolitical Tensions Limit Downsid