Gold prices dropped for the fourth straight session on Tuesday as global traders reacted to shifting interest-rate expectations. Iraq watched these movements closely because Iraq gold market trends often follow global changes. Stronger pressure from the U.S. dollar added more weight to the decline.
Spot gold fell 0.9 percent to $4,010 per ounce by 0444 GMT. Meanwhile, U.S. gold futures for December delivery slipped 1.6 percent to $4,009.20 per ounce. These declines continued last week’s downward momentum and reinforced the broader slide. Traders adjusted their positions quickly as expectations for a U.S. rate cut weakened.
Edward Meir from Marex explained the situation in simple terms. He said the dollar gained strength and speculative positions dropped. He added that the gold market may consolidate for now. A stronger dollar usually hurts gold because it raises costs for buyers using other currencies.
The U.S. dollar index held firm after a sharp rise in the previous session. This move added new pressure on gold. Iraq gold market trends also reacted to this shift because the dollar heavily influences local price movement.
Last week, U.S. lawmakers reached a deal to end the country’s longest government shutdown. The shutdown delayed official economic data releases. The lack of data weakened support for a possible Federal Reserve rate cut in December. Market expectations shifted quickly after the shutdown ended.
Fed Vice Chair Philip Jefferson also influenced sentiment on Monday. He said the central bank needed to move slowly with future cuts. His comment reduced hopes for a December cut. Gold usually gains strength when interest rates fall because lower rates reduce the opportunity cost of holding non-yielding assets.
This week, many investors will watch key U.S. data releases. The September nonfarm payrolls report on Thursday could offer new clues about the health of the American economy. Strong economic data usually weakens gold, while soft data often boosts it. Iraq gold market trends often follow these signals because global demand shapes local prices.
ANZ Bank noted a sharp shift in expectations. Traders priced a 42 percent chance of a December cut overnight. The number fell from almost 100 percent after the September meeting. This rapid shift reduced appetite for gold as investors reassessed their strategies.
However, long-term factors still support the metal. ANZ pointed to several tailwinds. These included geopolitical tension, debt concerns in the United States, global de-dollarisation efforts, and strong central bank buying. These forces could support gold demand through the medium term and the long term.
Other precious metals also moved lower on Tuesday. Spot silver dropped 1.2 percent to $49.58 per ounce. Platinum slipped 1 percent to $1,517.73, and palladium fell 1.5 percent to $1,372.05. These declines showed broader weakness across the metals market as global uncertainty grew.
Overall, Iraq gold market trends will continue to react to global rates, U.S. data, and currency movements. Investors expect more volatility while they wait for clearer signals from the Federal Reserve.