Gold prices extended their decline for a third consecutive session on Thursday, hovering near the lowest levels seen in more than seven months.
The precious metal’s downward trajectory was driven by a strengthening US dollar and rising market expectations for Federal Reserve rate hikes, which weighed heavily on non-yielding assets.
4% decline that pushed the metal toward its multi-month trough.
Spot gold slipped to $3,985.89 per ounce on Wednesday, marking a 0.4% decline that pushed the metal toward its multi-month trough.
The sell-off reflects a broader repricing of risk assets as investors adjust to a tighter monetary policy outlook.
The dollar’s ascent, fueled by renewed bets on Fed tightening, has eroded the appeal of gold for holders of other currencies.
This move continues a pattern of pressure on precious metals, with the recent drop signaling a shift in market sentiment toward higher-for-longer interest rates.