Gold prices continued their downward trajectory on Thursday, hovering near the lowest levels seen in more than seven months.
The precious metal’s decline was driven by a strengthening US dollar and rising market expectations for Federal Reserve interest rate hikes, which together eroded the appeal of non-yielding assets.
This session’s weakness follows a third consecutive day of losses for Comex gold and silver futures.
The sustained selling pressure reflects a broader repricing of rate-sensitive assets as investors adjust to a tighter monetary policy outlook.
The dollar’s firmness has acted as a persistent headwind, making gold more expensive for holders of other currencies and reducing its relative value compared to interest-bearing instruments.
The move underscores the sensitivity of precious metals to shifts in the Fed’s policy path.