Comment: Gold knocked lower by dollar surge and rate reset

Bullion has given up its 2026 advance, pressured by a shift into cash and oil. Meanwhile, higher energy costs are stoking inflation concerns and reinforcing expectations that interest rates may remain elevated for longer

 
Nikos Tzabouras, Senior Market Analyst at Jefferies-owned Tradu.com, comments on gold’s pullback as the conflict in the Middle East is driving investors toward the US dollar and energy markets.
 
He says gold faces near-term pressure from a stronger dollar and shifting Fed expectations. However, he also notes that rising growth risks and longer-term drivers like central bank buying and de-dollarisation could still support prices.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Gold erases its 2026 gains as the Middle East conflict has sparked a retreat from precious metals, which can linger and push bullion even lower. Inflation risks prevail amid a spike in energy prices, creating scope for higher-for-longer interest rates globally – an unfavourable environment for non-yielding assets. Markets no longer see any Fed rate cuts this year and have started pricing in chances of hikes, boosting the US dollar and compounding bullion’s weakness. Meanwhile, gold also falls victim to a search for cash and a rotation into energy commodities.

“On the other hand, the conflict also creates growth risks amid an already uncertain macroeconomic backdrop. Should market attention shift to this theme, bullion could find meaningful support. Gold may be down, but its longer-term drivers are far from dead. Central bank buying, de-dollarisation and currency debasement trends may have faded from the headlines, but they remain very much alive.”