Gold prices extended their decline on Wednesday, slipping to their lowest level in nearly two weeks.
The precious metal faced renewed selling pressure as the US dollar strengthened, driven by shifting expectations in the bond market that the Federal Reserve may need to raise interest rates later this year to combat persistent inflation.
Gold has fallen approximately 23% since the start of the conflict between the United States, Israel, and Iran in late February.
Spot gold retreated 0.7% to trade at $4,162 on Tuesday, pressured by a strengthening U.S. dollar and growing market expectations that the Federal Reserve may raise interest rates later this year.
Comex gold and silver futures extended their losses, reflecting broader risk-off sentiment among non-yielding assets as real yields climbed.
The move marks a significant reversal from earlier in the year.
Gold has fallen approximately 23% since the start of the conflict between the United States, Israel, and Iran in late February.