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Why the dollar matters

A rise in US interest rates often strengthens the US dollar. Since gold is typically priced in dollars, a stronger dollar makes gold more expensive for buyers using other currencies. This can reduce demand and contribute to a fall in gold prices globally.

Stories that explain this

Gold prices heading for third weekly loss on US interest rate hike bets

Related explainers

Global markets feel the ripple Why gold loses its shine How inflation affects gold Your savings and interest rates UK interest rates vs. US rates Why is the dollar strong? How much is £253m in Canadian dollars? How much is a trillion dollars?

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