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, marking a continued pullback from recent highs as investors reassessed the risk-free rate environment.
The decline in gold was part of a broader retreat across non-yielding assets.
Precious metals and bitcoin both posted losses on Wednesday as shifting expectations for U.S. monetary policy dampened investor appetite for assets that do not generate income.
The repricing reflects a market pivot away from the previous consensus of imminent rate cuts, with traders now pricing in a more hawkish stance from the central bank.
This move underscores the sensitivity of safe-haven assets to changes in the U.S. yield curve and dollar strength.