Gold prices hit 7-month low: What's behind the decline?
What's the story
Gold prices have hit a more than seven-month low, weighed down by a stronger US dollar. The precious metal fell below the key $4,000 per ounce mark for the first time since November 2025. Spot gold was trading at $3,985.89 per ounce. US gold futures for August delivery lost 0.2% to $4,001.6, while spot silver and platinum fell by 0.2% to $57.33 and $1,575.85 per ounce, respectively.
Market dynamics
Gold under pressure from stronger dollar, Fed rate hike expectations
The stronger US dollar and expectations of Federal Reserve (Fed) rate hikes have put pressure on gold prices. The dollar has gained for three consecutive days, hitting a 13-month high on Wednesday. This makes gold more expensive for buyers holding other currencies. Traders are expecting three Fed rate hikes this year, with a nearly 67% chance of an increase in September, according to the CME FedWatch Tool.
Anticipation builds
Investors await US Personal Consumption Expenditures data for insights
Investors are now looking forward to the release of US Personal Consumption Expenditures data, which is the Fed's preferred measure of inflation. The data is due later today and could provide further clues on future monetary policy decisions. According to the All India Sarafa Association, gold prices in Delhi extended their losses on Wednesday, falling by ₹1,200 to ₹1,48,100 per 10 grams from the previous close of ₹1,49,300.