Spot gold fell 0.8% to $4,142.38 an ounce in London trading, erasing some of the momentum from its first weekly gain since May.
The pullback reflects a shift in market sentiment as expectations for additional Federal Reserve rate hikes receded, reducing the immediate pressure on non-yielding assets.
7% to $4,162, highlighting the metal’s sensitivity to shifts in the US monetary policy outlook.
Bullion dipped as much as 1% to around $4,137 an ounce before stabilizing.
The move comes after a volatile period for precious metals, which had previously retreated on Tuesday under pressure from a strengthening US dollar and growing fears that the Fed might raise rates later this year.
That earlier session saw gold drop 0.7% to $4,162, highlighting the metal’s sensitivity to shifts in the US monetary policy outlook.
The current decline suggests that the recent weekly advance was partly driven by short-term positioning rather than a fundamental change in the rate-hike narrative.