Gold prices slid for a second straight day on Wednesday, hitting their lowest level in nearly two weeks as a surging U.S. dollar and growing expectations of further Federal Reserve rate hikes dampened demand for the safe-haven metal.
Investors were also closely watching developments in U.S.-Iran negotiations, adding another layer of uncertainty to global markets.
Spot gold fell 0.9% to $4,071.28 per ounce by 09:09 GMT after touching its weakest level since June 11 earlier in the session. U.S. gold futures for August delivery dropped an even steeper 1.5% to $4,088.80 per ounce.
The precious metal has come under sustained pressure from the dollar’s relentless advance. The greenback climbed to a 13-month high, making gold more expensive for holders of other currencies and curbing international demand.
The sell-off extended across the precious metals complex. Spot silver fell 1.5% to $61.12 per ounce, platinum lost 1.4% to $1,629, and palladium declined 1.6% to $1,217.25 per ounce.
