Spot gold prices have slipped below the critical $4,000 per ounce level, marking a significant technical breakdown for the precious metal.
The asset fell 3.4% in the session to trade at $3,968.41 an ounce, under pressure from a strengthening US dollar and growing market expectations for interest rate hikes.
The decline represents the first time gold has traded below the $4,000 threshold since November, signaling a potential shift in the commodity's recent trajectory.
The decline represents the first time gold has traded below the $4,000 threshold since November, signaling a potential shift in the commodity's recent trajectory.
The selling pressure was driven by a firmer greenback, which made dollar-denominated assets more expensive for foreign buyers, alongside a repricing of Federal Reserve policy expectations that favored higher rates for longer.
This move extends a broader period of volatility for precious metals.
Gold prices had previously extended their decline earlier in the week, slipping to their lowest level in nearly two weeks as the US dollar strengthened.