Gold prices retreated further on Tuesday, extending a prolonged downward trend as market participants digested the increasingly hawkish posture of Federal Reserve Chair Kevin Warsh.
The new Fed chief has signaled a willingness to maintain restrictive policy longer than many investors had anticipated, dampening the appeal of non-yielding assets like gold.
This shift in central bank tone has reinforced a firmer US dollar, which continues to act as a headwind for the precious metal.
The latest pullback follows a volatile week for gold, which had briefly halted a four-week losing streak with a weekly gain of more than 2% before reversing course.
Prices are now hovering near their lowest levels in over seven months, reflecting growing market caution.
The decline is not isolated to gold; the broader safe-haven complex is under pressure as traders recalibrate their expectations for the Federal Reserve's policy path.