Greenback under pressure as gold rides tailwinds

THE US dollar began 2026 on a weaker footing, as rising policy uncertainty and shifting global dynamics prompted investors to reassess its role in the international system.

Then a series of unexpected US foreign policy actions elevated risk perceptions – including the removal of Venezuela’s president, tariff threats against Nato allies over Greenland and now military attacks against Iran.

In addition, the Trump administration’s criminal probe into US Federal Reserve chairman Jerome Powell has intensified worries about the Fed’s independence, leading markets to price in a higher US policy risk premium.