Gold Falls Under $4,000 on Prospect of Higher US Rates
US gold futures fell nearly 4% as a firmer dollar and growing rate-hike bets pressured bullion, analysts said.
- On Wednesday, spot gold prices fell below $4,000 per ounce for the first time since November 2025, driven by a firmer U.S. dollar and growing expectations of elevated interest rates.
- Traders ramped up bets on U.S. interest rate hikes after the Federal Reserve struck a hawkish tone, while persistent inflationary fears from the Iran war made gold less attractive as it offers no yield.
- ING analysts cut gold forecasts to $4,300 for the third quarter and $4,600 for the fourth, while platinum dropped 4.3% to $1,580.76 amid broad precious-metals selling pressure.
- Independent metals trader Tai Wong said, "For gold, there is support just under $3,900," adding that while central bank purchases continue, the market faces a potentially long period of consolidation.
- Investors await Friday's release of Personal Consumption Expenditures data, the Fed's preferred inflation measure, which may signal the direction of future monetary policy and further pressure on gold prices.
27 Articles
27 Articles
Gold sinks below $4,000 as traders eye Fed rates
Gold has entered bear market territory, sliding below US$4,000 an ounce for the first time since November 2025 as rising interest rate expectations and a strengthening dollar weigh heavily on bullion, though local traders argue the dip may not last long.
Gold falls below $4,000 an ounce for the first time since November
Legend has it that at the end of the rainbow there is a pot of gold, but reality suggests that the yellow metal is in free fall, with no bottom in sight. Gold has lost a quarter of its value in just five months since reaching record highs in late January, when an ounce surpassed $5,400. After two days of sharp declines, it fell below $4,000 an ounce on Wednesday for the first time since last November, although it recovered the $4,000 mark by the…
Gold dips below $4,000 on stronger dollar, rising rate-hike expectations (GLD:NYSEARCA)
Gold futures plunged below $4,000 in a fourth straight losing session and lowest close since early November, pressured by a firming US dollar and growing expectations of interest rate hikes.
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