Gold prices have broken below the critical $4,000 per ounce threshold, marking their lowest level in seven months.
The decline reflects a broad shift in market sentiment as investors recalibrate expectations for US monetary policy.
The precious metal’s slide is part of a wider sell-off across safe-haven assets, with silver and platinum also trading near their lowest points in nearly two years.
The primary driver behind the move is a strengthening US dollar, fueled by growing bets that the Federal Reserve will maintain a tighter policy stance for longer than previously anticipated.
As the dollar gains ground, gold becomes more expensive for holders of other currencies, dampening demand.
Analysts note that this repricing could trigger fresh outflows from gold exchange-traded funds as investors rotate into yield-bearing assets.