Rising Dollar and Progress in Peace Talks Drive Global Decline in Gold and Oil
November 24, 2025459 ViewsRead Time: 2 minutes
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The commodity markets witnessed a notable decline in gold and oil prices during trading on Monday, amid the rise of the US dollar to its highest levels in nearly six months, and increasing indications that the Federal Reserve may refrain from cutting interest rates in December, along with cautious optimism regarding peace talks between Russia and Ukraine.
Gold Declines Under Dollar Pressure
Gold continued its slight losses, dropping in spot transactions by 0.07% to record $4051.48 per ounce at the time of writing, after touching $4040.33 in early trading. December futures fell by 0.5% to $4058.90.
This decline coincided with the rise of the dollar, which reached its highest level in nearly half a year last weekend, supported by data indicating strong growth in US jobs during September, with an increase of 119,000 jobs.
The rising dollar makes gold, which is priced in dollars, more expensive for holders of other currencies, putting pressure on demand.
Recent economic data also showed a slowdown in US manufacturing activity to its lowest level in four months during November due to tariffs and rising import costs.
Expectations for an interest rate cut next month dropped to 69% according to the "FedWatch" tool, down from 74% in the previous session, which reduces the appeal of gold that typically benefits from low-interest environments.
Performance of Other Metals
Silver: rose 0.23% to $50.15 per ounce
Platinum: increased by 1.96% to $1545.11
Palladium: rose 0.74% to $1392.46
Oil Prices Decline Amid Optimism in Peace Talks
In the energy sector, oil prices fell, continuing last week's losses, as optimism grew regarding Moscow and Kyiv nearing a peace agreement that could open the door for a significant return of Russian oil to the markets.
Brent crude contracts fell by 0.32% to $62.35 per barrel, while West Texas Intermediate crude dropped by 0.4% to $57.84.
Both crude types had dropped nearly 3% last week, recording their lowest level since October 21, amid fears that lifting sanctions on Moscow—if a peace agreement is reached—could increase oil supply.
Market analyst at "IG" Tony Sycamore noted that selling pressures were driven by US President Donald Trump's push for a "quick" peace agreement between Russia and Ukraine, which the markets view as a potential pathway for the return of Russian oil flows.
Despite US sanctions on "Rosneft" and "Lukoil" coming into effect on Friday, freezing about 48 million barrels of Russian crude, the markets believe that the move towards peace may overshadow the impact of these sanctions.
Gold Declines Under Dollar Pressure
Gold continued its slight losses, dropping in spot transactions by 0.07% to record $4051.48 per ounce at the time of writing, after touching $4040.33 in early trading. December futures fell by 0.5% to $4058.90.
This decline coincided with the rise of the dollar, which reached its highest level in nearly half a year last weekend, supported by data indicating strong growth in US jobs during September, with an increase of 119,000 jobs.
The rising dollar makes gold, which is priced in dollars, more expensive for holders of other currencies, putting pressure on demand.
Recent economic data also showed a slowdown in US manufacturing activity to its lowest level in four months during November due to tariffs and rising import costs.
Expectations for an interest rate cut next month dropped to 69% according to the "FedWatch" tool, down from 74% in the previous session, which reduces the appeal of gold that typically benefits from low-interest environments.
Performance of Other Metals
Silver: rose 0.23% to $50.15 per ounce
Platinum: increased by 1.96% to $1545.11
Palladium: rose 0.74% to $1392.46
Oil Prices Decline Amid Optimism in Peace Talks
In the energy sector, oil prices fell, continuing last week's losses, as optimism grew regarding Moscow and Kyiv nearing a peace agreement that could open the door for a significant return of Russian oil to the markets.
Brent crude contracts fell by 0.32% to $62.35 per barrel, while West Texas Intermediate crude dropped by 0.4% to $57.84.
Both crude types had dropped nearly 3% last week, recording their lowest level since October 21, amid fears that lifting sanctions on Moscow—if a peace agreement is reached—could increase oil supply.
Market analyst at "IG" Tony Sycamore noted that selling pressures were driven by US President Donald Trump's push for a "quick" peace agreement between Russia and Ukraine, which the markets view as a potential pathway for the return of Russian oil flows.
Despite US sanctions on "Rosneft" and "Lukoil" coming into effect on Friday, freezing about 48 million barrels of Russian crude, the markets believe that the move towards peace may overshadow the impact of these sanctions.
