Dollar Strength Weighs on Gold Amid Higher Yields

The US Dollar has seen significant gains this week, pushing gold prices down to a more-than-one-month low of $4,235. The Federal Reserve's decision to raise interest rates by 25 basis points (bps) to the 3.75%-4.00% range on Wednesday delivered its first increase since 2023.

The move has resulted in higher Treasury yields and a stronger US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, trading around 100.40 near seven-week highs.

However, falling oil prices have offset some of the post-Fed pressure after reports that Saudi Arabia is rerouting some exports and working to repair its East-West pipeline, damaged in an attack last week.