Spot gold prices have slipped below the critical $4,000 threshold, trading near $3,960 as the precious metal extended losses for a third consecutive session.
The breakdown marks a significant technical failure for bulls, with the metal now on course to record its largest monthly decline since October 2008.
June’s 12.1% drop would constitute the fourth consecutive monthly fall for gold, signaling a sustained shift in market sentiment away from safe-haven assets.
June’s 12.1% drop would constitute the fourth consecutive monthly fall for gold, signaling a sustained shift in market sentiment away from safe-haven assets.
The sell-off is being driven by a confluence of macro headwinds.
Rising US Treasury yields have increased the opportunity cost of holding non-yielding assets, while a strengthening US dollar has made gold more expensive for holders of other currencies.
Additionally, market expectations are shifting toward a more hawkish Federal Reserve stance, with growing speculation that the central bank may raise interest rates later this year rather than cut them.