Gold prices are on course to record their largest monthly decline since October 2008, as shifting Federal Reserve policy expectations continue to drive selling pressure in the precious metals market.
The metal slipped more than 1% on Tuesday, extending a broader downturn that has seen gold shed significant value over recent weeks.
The repricing reflects a decisive shift in market sentiment.
While geopolitical uncertainty in the Middle East had previously provided a floor for gold prices, traders are now prioritizing the implications of a hawkish Federal Reserve stance.
Expectations that the Fed will maintain or increase interest rates to combat inflation have strengthened the US dollar, creating a headwind for non-yielding assets like gold.
This dynamic has overridden the traditional safe-haven demand that typically supports the metal during periods of geopolitical tension.