The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Reflecting the continued dominance of the US Dollar over commodity markets, gold prices weakened as the greenback gained support from a hawkish Federal Reserve outlook. According to reports, ongoing tensions with Iran have provided a floor for the dollar, acting as a safe-haven asset and increasing pressure on bullion. Markets are increasingly pricing in a more aggressive interest rate path, which raises the opportunity cost of holding non-yielding gold.
This decline comes as US economic data shows surprising resilience, with the NY Empire State Manufacturing Index hitting 19.6 on May 15, 2026, significantly beating the 7.5 forecast per market data. In comparison, other precious metals have faced similar headwinds as the dollar strengthens. Experts note that the 0.7% growth in US Industrial Production reported in mid-May further supports the 'higher-for-longer' interest rate narrative that currently weighs on the sector.
Sign in to access this content
Sign InTraders should watch for key technical support levels as gold continues its 9-day downward trend. Based on the economic calendar, upcoming central bank communications will be critical catalysts for price direction. Current price action remains highly sensitive to safe-haven flows, particularly regarding any further escalation in Iran-related geopolitical risks which could abruptly shift market liquidity.
Update: Bullion confirmed its downward trajectory by marking a second consecutive weekly loss, with spot gold falling 0.4% to $4,522.89 per ounce and June futures settling at $4,524.40. This weakness is being exacerbated by rising oil prices, which have reinforced market expectations that the Fed will maintain a tight monetary policy stance to combat persistent inflationary pressures.