Gold prices have slipped below the critical $4,000 per ounce threshold for the first time since November, marking a significant technical breakdown in the precious metals market.
The decline was accompanied by a sharp slide in silver, which dropped under $60 to trade near $58, as selling pressure pushed both metals to multi-month lows.
The move reflects growing market anxiety over the US monetary policy outlook.
Investors are increasingly pricing in the possibility that new Federal Reserve chairman Kevin Warsh will be forced to raise interest rates, a scenario that undermines the appeal of non-yielding assets like gold.
The prospect of higher borrowing costs has accelerated a rotation out of bullion and into industrial commodities perceived as having stronger growth fundamentals.
According to the Australian Financial Review, portfolio managers are actively recalibrating their exposures, with some pivoting toward copper and rare earths.