Spot gold prices extended their losses on Wednesday, slipping to $3,985.89 per ounce, a decline of 0.4% that pushed the precious metal near its lowest level in seven months.
The sell-off marks a continuation of pressure on bullion, which has faced renewed selling interest as macroeconomic headwinds intensify.
The decline is being driven by a strengthening US dollar and a shift in market expectations regarding Federal Reserve policy.
Traders are increasingly pricing in the possibility of interest rate hikes, a development that typically weighs on non-yielding assets like gold.
The dollar’s firmness has made gold more expensive for holders of other currencies, further dampening demand.
This session’s drop follows a third consecutive day of losses for Comex gold and silver futures.