3 Factors for Gold Price to Fall & US Dollar to Strengthen by 60%

Jakarta, Pintu News – Global gold prices are under pressure again amid changing expectations for US interest rate policy. The strengthening of the US dollar has made gold prices lose appeal as a safe haven asset for investors. This situation is also a concern for crypto and cryptocurrency market players as global asset movements often affect broad investment sentiment.

On the other hand, investors are starting to consider other instruments that offer higher returns than gold. This shows that changes in global monetary policy can affect a wide range of asset classes, from gold to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

1. Strengthening US Dollar Pressures Global Gold Prices

One of the main factors putting pressure on gold prices is the strengthening of the US dollar. When the value of the dollar increases, gold becomes more expensive for investors using other currencies. As a result, global demand for gold tends to decline and triggers price pressure in the commodity market.

This condition was triggered by rising inflation concerns in the United States as well as possible changes in interest rate policy by the central bank. Data from CME Group FedWatch shows a chance of around 60% that the Fed will keep interest rates on hold next March. This situation makes the US dollar more attractive to global investors than gold.

Also Read: 7 Reasons On-Chain Gold is on the Rise: Trading 24/7 When the Market is Closed, XAUT-USDT is a Target

2. Margin Calls in the Stock Market Trigger Gold Sales

The pressure on gold prices is also influenced by global stock market conditions that experience high volatility. When stock prices fall sharply, leveraged investors often experience margin calls. To meet the need for additional capital, they have to sell some of their assets.

Gold is often the first choice to be sold as it has previously recorded price increases throughout the year. This massive selling creates a domino effect that accelerates the decline of gold prices in the market. Under these conditions, gold no longer serves as a hedge, but rather a source of liquidity for investors.

This phenomenon also reflects how global investors manage portfolios in uncertain market situations. In addition to gold, some investors have also started to turn their attention to digital assets such as cryptocurrencies for investment diversification.

3. Professional Investors Shift to Higher Yielding Assets

Changes in investment strategies from financial institutions have also put pressure on gold prices. Many fund managers began to reduce gold holdings and shift funds to higher-yielding instruments. US government bonds are one of the more attractive alternatives because they provide stable interest.

While gold does not provide yield or interest, rising interest rates make fixed income-based instruments more competitive. This condition makes global fund flows shift away from gold towards assets that are considered more profitable in the short term.

Technically, gold prices are still in a long-term uptrend. However, strong selling pressure opens up opportunities for a deeper correction if several important support levels are broken, including:

• First support: $5,143.89 or about Rp86,957,151
• Second support: $5,002.31 or about Rp84,563,548
• 50-day moving average: $4,833.30 or about Rp81,706,613

If the market pressure continues, gold prices could potentially approach these support levels before finding recovery momentum.

Conclusion: Global Market Sentiment Shift

Current market conditions show that gold is facing pressure from various directions. The strengthening of the US dollar, changes in the Fed’s interest rate expectations, as well as liquidation due to margin calls are the main factors that lower gold prices. As long as inflation and global oil prices remain high, the US dollar is expected to remain strong and continue to influence gold price movements.

For investors, this situation is a reminder that global market dynamics can affect various investment instruments. Apart from gold, digital assets such as crypto and cryptocurrencies also often experience changes in sentiment due to global monetary policy. Therefore, understanding the relationship between economic policies and market movements is an important step in developing an investment strategy.

Also Read: 5 Advantages of Pegadaian Gold Deposit

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Gold-Based Crypto: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Pax Gold (PAXG), a stablecoin backed by one troy ounce (t oz) of 400 oz London Good Delivery gold bullion, stored in Brink’s vaults.

PAXG tokens are available and traded on various crypto exchanges. PAXG is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.

Reference

• FXEmpire. Gold News:Gold Price Slides as Fed Rate Expectations Shift – Gold Market Outlook. Accessed March 4, 2026.