Gold prices have broken below the critical $4,000 per ounce threshold, marking their lowest level in seven months and extending a sharp quarterly decline.
The precious metal has shed more than 25% of its value from recent peaks, driven by a broad shift in market sentiment as investors recalibrate expectations for US monetary policy and risk appetite.
Major investment banks and rating agencies have downgraded their near-term outlooks for the asset, citing renewed headwinds and a rotation into equities.
Despite the bearish consensus in Western markets, structural demand remains robust in Asia, particularly in China.
Reports indicate that Beijing is actively expanding its gold reserves as part of a broader strategy to reduce reliance on the US dollar amid ongoing trade tensions.
This state-led accumulation provides a floor for prices, even as speculative and institutional selling pressure mounts in New York and London.