Gold prices have retreated to their lowest point in seven months, succumbing to the dual pressure of rising interest rates and a strengthening US dollar.
The move marks a significant shift in sentiment for the precious metal, which has struggled to maintain its footing as the macroeconomic environment turns increasingly hostile to non-yielding assets.
The decline reflects a broader repricing of safe-haven demand.
As investors recalibrate their portfolios in response to higher borrowing costs, the opportunity cost of holding gold has risen sharply.
The metal, which offers no yield, becomes less attractive when risk-free rates climb and the dollar — the benchmark currency for gold pricing — gains strength.
This development follows a period of volatility in the commodities complex.