Spot gold prices declined 1.5% to $3,957.74 per ounce, putting the precious metal on track for a fourth consecutive monthly decline.
The sell-off reflects growing market conviction that the Federal Reserve may need to raise interest rates, a shift in expectations that has weighed heavily on non-yielding assets.
The downward pressure on gold comes after a period of elevated prices, with the World Gold Council recently raising its 2026 target to $4,100 as sentiment shifted.
The retreat in global spot rates triggered immediate adjustments in local markets.
In Thailand, the Gold Traders Association reported that local gold prices dropped by 650 baht to 64,450 baht per baht weight, tracking the international softening.
This local move underscores the breadth of the correction, which is now impacting retail and investment demand across Asia.
The downward pressure on gold comes after a period of elevated prices, with the World Gold Council recently raising its 2026 target to $4,100 as sentiment shifted.
However, the current macro environment is challenging that bullish outlook.