Spot gold prices reversed a sharp rally early in the week, retreating from a peak of $4,382 per ounce as Federal Reserve officials signaled a continued commitment to a firm monetary policy stance.
The precious metal had initially surged on safe-haven demand driven by escalating tensions between the United States and Iran, but the momentum quickly dissipated as investors digested the central bank's hawkish undertones.
The price action underscores the growing dominance of interest-rate expectations over geopolitical risk premiums in precious metals markets.
With the Fed maintaining a restrictive posture, the opportunity cost of holding non-yielding assets like gold remains elevated, dampening investor appetite despite sticky inflation concerns and geopolitical volatility.
This dynamic has contributed to spot gold tumbling to its lowest level in six months in recent sessions, shedding the traditional safe-haven premium that typically supports the metal during periods of heightened global uncertainty.
In Vietnam, local gold prices also faced headwinds.