Gold prices continued their downward trend on Thursday after sinking to their lowest level in more than seven months in the previous session, as a stronger U.S. dollar and growing expectations of an interest rate hike weighed on sentiment.
By 05:26 GMT, spot gold was down 0.2% at $3,993.33 per ounce, extending losses after a sharp decline that pushed prices below the $4,000 mark for the first time since November 2015.
U.S. gold futures for August delivery settled at $4,008.30 per ounce, reflecting continued weakness across the precious metals market.
The latest decline comes after gold dropped to its lowest level in over seven months on Wednesday, extending a broader sell-off that has erased a significant portion of its earlier gains. Prices are now about 29% below their peak of $5,594.82 reached on January 29.
Market sentiment remains dominated by expectations of tighter U.S. monetary policy, with investors increasingly pricing in the possibility of further interest rate increases this year. Higher rates typically reduce demand for non-yielding assets like gold.
Matt Simpson, senior analyst at StoneX, said the metal remains under pressure due to persistent dollar strength.
“Gold is currently experiencing downward momentum due to the strength of the dollar,” he noted.
The stronger greenback has made gold more expensive for holders of other currencies, further dampening global demand.
Other precious metals also traded lower. Silver fell 0.1% to $57.37 per ounce in spot trading, while platinum declined 0.8% to $1,566.25, both hovering near their lowest levels since November 2025.
Palladium bucked the broader trend, rising 0.4% to $1,171.25, though it remained close to a nine-month low.
Overall, analysts say the precious metals market remains under pressure as traders await clearer signals on U.S. monetary policy direction in the coming weeks.
