Gold fell roughly $30 to $35 per ounce during May 17–24, pressured by a stronger U.S. Dollar Index near 99.32 and rising Treasury yields toward 4.5%–4.6%. FOMC minutes released around May 21 reinforced higher-for-longer expectations by pointing to persistent inflation and keeping rate cuts unlikely. Spot gold opened near $4,540 and traded mostly between $4,480 and $4,566, with sharp daily swings and a floor near $4,480 before recovering toward the week’s close. Central banks continued net gold purchases, supporting longer-term targets above $5,000 by end-2026, while ETF outflows and reduced spot and futures demand reflected the shift toward interest-bearing alternatives. Elevated energy prices and U.S. CPI data sustained inflation concerns and reduced gold’s hedge appeal.
"Gold fell roughly $30 to $35 per ounce during May 17-24, pressured by a DXY near 99.32 and rising Treasury yields. FOMC minutes released May 21 reinforced higher-for-longer Fed expectations, extending gold's 16% slide from its January 2026 peak of $5,589. Central banks continue net gold purchases, keeping gold bug targets above $5,000 by end-2026 despite near-term headwinds."
"Spot gold opened the May 17-24 period near $4,540 and spent most of the week oscillating between $4,480 and $4,566. Daily swings were sharp in both directions, with some sessions posting moves of $25 to the upside before others surrendered as much as $84. The metal found a floor near $4,480 on several tests before recovering toward the week's close."
"A stronger dollar raises the cost of dollar-denominated gold for buyers operating in other currencies, and that friction showed up in lower demand across spot and futures markets. Benchmark 10-year U.S. Treasury yields pushed toward 4.5% to 4.6%, levels near one-year highs. When bonds offer that kind of return, gold's lack of yield becomes a liability. ETF outflows reflected the shift, as holders rotated toward interest-bearing alternatives."
"Federal Reserve policy expectations added further weight. FOMC minutes released around May 21 described persistent inflation, signaling that rate cuts remain unlikely in the near term. Markets pulled back their odds of any easing, directly reducing gold's appeal as a hedge against low real rates. Energy prices, elevated in part by tension around the Strait of Hormuz, kept inflation concerns alive. U.S. CPI data from the period reinforced those worries and gave the Fed cover to stay patient."
Read at news.bitcoin.com
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