Gold prices have slipped below the $4,000 per ounce threshold for the first time since November, marking a significant technical breakdown for the precious metal.
Spot gold fell 3.4% to trade at $3,978.67 an ounce in session trading, reflecting renewed selling pressure from investors reassessing the Federal Reserve's policy path.
The decline is primarily driven by expectations of higher US interest rates, which strengthen the dollar and increase the opportunity cost of holding non-yielding assets like gold.
As the greenback gains ground, the inverse correlation with bullion intensifies, pushing prices lower.
This move follows a broader retreat that saw gold hit its lowest level in nearly two weeks earlier in the week.
Market participants are closely watching the interplay between US Treasury yields and the dollar index.