Gold Prices Slip as Dollar Gains Momentum in Anticipation of U.S. Fed Cues

17 November 2025

Gold prices edged downward on November 17, 2025, as investors navigated an increasingly firm U.S. dollar and tempered expectations for near-term interest rate cuts from the Federal Reserve. According to data from four o’clock ET, spot gold was trading at approximately $4,019.12 per ounce, a decline of around 1.5 % on the day, while U.S. gold futures for December delivery settled at about $4,074.50 per ounce, down around 0.5 %.

The mood shift in the precious-metals market reflects a broader recalibration of expectations. With multiple Fed policymakers reiterating a cautious stance on monetary-policy easing, the likelihood of a 25-basis-point rate cut in December has fallen to around 41 %, down from over 60 % just a week earlier. As interest rates remain elevated, the opportunity cost of holding gold a non-yielding asset rises, dampening its appeal to investors.

Meanwhile, the U.S. dollar index strengthened, exerting additional pressure on bullion by making the metal more expensive for holders of other currencies. At the same time, much of the market’s attention turned to this week’s domestic agenda: the release of the Fed’s meeting minutes and the long-delayed September non-farm-payrolls report, both of which could shed light on the central bank’s medium-term policy path.

Adding weight to the story, the Fed’s vice-chair, Philip Jefferson, stated publicly that the central bank should “proceed slowly” with any further rate cuts. Analysts at Scotiabank suggested that with real interest rates likely to remain elevated in the near term and economic uncertainty on the rise, they still anticipate gold to fall to about $3,800 per ounce in 2026, compared with their previous band of $3,450 for this year.

Other precious metals followed gold’s retreat. Spot silver declined about 1.2 % to $49.94 per ounce, platinum dropped nearly 1 % to $1,526.45, and palladium eased by approximately 0.4 % to $1,379.02.

Despite the percentage decline, the broader trend must be viewed in context. While gold may be slipping now, its price remains well above pre-pandemic levels. The metal’s relatively modest pullback reflects more a reevaluation of expectations than a dramatic collapse. The key driver is that higher real yields and a stronger dollar tend to hurt gold’s safe-haven appeal.

Investors and market watchers are also focused on timing. Turbulent economic conditions or renewed concerns about inflation or growth would likely swing sentiment back to gold’s favour, but for now the narrative is tilted toward caution. Many analysts believe that until the Fed signals a clear pivot toward easing or until inflation data surprises to the upside, gold may struggle to regain momentum.

From a strategy standpoint, bullion investors face a two-fold challenge. First, navigating expectation shifts around monetary policy, and second, assessing whether recent losses present a tactical buying opportunity. Some portfolio managers argue that gold still offers diversification benefits particularly in environments of fiscal stress or geopolitical strain but today’s data suggest shorter-term headwinds remain.

In sum, gold’s slide this week is a reminder that even assets valued for stability respond to the same macroeconomic levers that drive equities and bonds. As the dollar strengthens and rate-cut hopes dim, gold becomes less of a hedge and more of a trade. For investors, the message is clear: remaining nimble, watching policy signals and reassessing assumptions around real yields are paramount.