Spot gold retreated on Tuesday, pressured by a strengthening U.S. dollar and growing market expectations that the Federal Reserve may raise interest rates later this year.
The precious metal fell 0.7% to trade at $4,162.
The strengthening dollar, a direct beneficiary of higher rate expectations, added further pressure to gold prices, which are denominated in U.
This decline contributes to a broader monthly correction, with gold down approximately 12% in June as investors recalibrate their stance on the Federal Reserve's monetary policy path.
The sell-off reflects a shift in market sentiment toward a more cautious Federal Reserve.
Data points suggesting a tighter policy stance have weighed heavily on non-yielding assets.
The strengthening dollar, a direct beneficiary of higher rate expectations, added further pressure to gold prices, which are denominated in U.S. currency.