#FedRateCutAffectsDollarTrend Fed rate cuts often weaken the USD, making gold more attractive as a hedge against currency depreciation. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, driving demand higher. However, if rate cuts boost economic optimism, investors may favor riskier assets, limiting gold’s gains. The USD’s movement plays a key role— a weaker dollar supports gold prices, while an unexpectedly strong dollar can pressure the metal despite rate cuts.