Gold prices continued their decline during Thursday’s trading, remaining near their lowest levels in more than seven months.
The decline came as the US dollar continued to strengthen, as well as market expectations that the Federal Reserve may raise interest rates this year.
Gold prices fall
Spot gold fell 0.2% to $3,993.33 an ounce.
U.S. futures settled at $4,008.30 an ounce.
During the previous session, the yellow metal broke the $4,000 level for the first time since November 2025, moving about 29% away from its all-time high of $5,594.82.
Why is gold declining?
Analysts believe that the strength of the dollar remains the most prominent factor behind the current pressures on gold.
Rising inflation rates in the United States and tightening monetary policy also contributed to expectations of interest rate hikes.
This has reduced the attractiveness of gold, which does not generate a fixed return for investors.
Market expectations indicated that three interest rate hikes could be implemented this year, with a 67% chance of being raised during the September meeting.
Investors await inflation data
Investors’ attention turned to the US Personal Consumption Expenditures (PCEs) data, the Federal Reserve’s preferred indicator for measuring inflation.
This data may determine the direction of monetary policy in the coming months, and thus the trajectory of gold prices.
In the precious metals market, silver and platinum also fell, while palladium rose slightly, although it remained near multi-month lows.
