Spot gold prices have broken through key support levels, declining 1.5% to $3,957.74 per ounce.
The move puts the precious metal on course for a fourth consecutive monthly decline, extending a broader downtrend that has persisted for weeks.
The sell-off reflects growing market conviction that the Federal Reserve may need to raise rates or hold them higher for longer, bolstering the US dollar and pressuring non-yielding assets.
A strengthening greenback has been a primary driver of the recent weakness, making dollar-denominated commodities more expensive for foreign buyers and reducing their appeal.
Geopolitical developments have failed to provide a floor for prices.
Despite ongoing negotiations between the US and Iran, investors remain cautious about the durability of any potential peace agreement.