Pound Rises Against Dollar: Key Factors Driving GBP/USD, Gold, and Oil Prices

By: Swarnalata

Published on: Mar 24, 2025

Pound Strengthens Amid Dollar Weakness: Commodity and Currency Market Update

The British Pound (GBP) climbed against a struggling US Dollar (USD) in early European trading on Monday, 24 March 2024, as concerns over the US economic outlook and Federal Reserve policy shifts dominated markets. Here’s a breakdown of the latest trends in currencies and commodities:

Pound Performance: GBP/USD and GBP/EUR

• GBP/USD rose 0.3% to $1.2955, marking its highest level in two weeks.


• GBP/EUR held steady, reflecting cautious optimism in European markets.

The Dollar’s decline comes amid growing fears of a US recession and speculation that the Federal Reserve may cut interest rates sooner than expected. Investors are reassessing the impact of aggressive Fed tightening cycles and ongoing geopolitical risks tied to Trump-era tariff policies, which continue to cloud global trade sentiment.

Why Is the Dollar Weakening?

• Dollar Index (DXY) fell to 103.93, its lowest in a month, as markets priced in potential Fed rate cuts.


• US Economic Concerns: Sluggish growth forecasts and inflationary pressures have heightened recession anxieties.


• Trade Policy Risks: Former President Donald Trump’s tariff strategies remain a wildcard, threatening global supply chains and economic stability.

Commodity Markets: Gold and Oil Prices in Focus

Gold Prices

• Safe-haven demand lifted gold as investors sought stability amid dollar volatility.


• Rising Fed rate cut bets could further boost gold’s appeal as a hedge against inflation.

Oil Prices

• Crude oil traded cautiously, balancing dollar weakness against concerns about slowing global demand.


• Geopolitical tensions and OPEC+ supply decisions remain critical drivers.

Key Takeaways for Investors

1. Monitor Fed Signals: Any hints of rate cuts could extend the Dollar’s downtrend, benefiting GBP and commodities.


2. Track Trade Policies: Escalating tariffs or US-China tensions may reignite market volatility.


3. Commodity Opportunities: Gold and oil remain sensitive to currency shifts and macroeconomic data.