Spot gold slipped 0.5% to $3,978.60 an ounce by 02:25 ET (06:25 GMT), while U.S. Gold Futures edged 0.4% lower to $3,993.80. Gold fell below the key $4,000-per-ounce level on Wednesday for the first time since November 2025 and has now declined nearly 30% from its January record high of $5,595.46 an ounce.<\/p>\n
The decline in gold comes as the U.S. dollar remains pinned at a 13-month high after six consecutive sessions of gains. The currency\u2019s strength is being supported by increasing market expectations that the Federal Reserve may raise interest rates later this year.<\/p>\n
According to CME FedWatch data cited in the report, markets are pricing in roughly a one-third probability of a rate hike in July and a 66% chance of tightening by September. A stronger dollar makes dollar-denominated gold more expensive for overseas buyers, while higher interest rates increase the opportunity cost of holding non-yielding assets such as bullion.<\/p>\n
ING analysts noted that \u201cGold's weakness highlights the extent to which markets have shifted their focus from safe-haven demand towards the implications of higher interest rates and tighter financial conditions.\u201d<\/p>\n
The latest slide in gold also reflects a reassessment of safe-haven demand. Easing geopolitical concerns amid progress in U.S.-Iran peace efforts, together with lower oil prices, have reduced some of the risk premium that had supported gold earlier in the year.<\/p>\n
Traders are now awaiting U.S. Personal Consumption Expenditures (PCE) data, the Federal Reserve\u2019s preferred inflation gauge, for further indications on the policy outlook.<\/p>\n
Other precious metals also retreated. Silver prices fell 0.6% to $57.10 per ounce after dropping more than 6% in the previous session. ING analysts commented that, \u201cWhile the silver market is expected to remain in deficit, some of the strongest demand drivers are becoming less supportive.\u201d Platinum slipped 1.6% to $1,559.60 an ounce, following a 4.5% decline on Wednesday.<\/p>\n
In base metals, Benchmark Copper Futures on the London Metal Exchange edged up 0.6% to $13,112.95 a ton, while U.S. Copper Futures were flat at $5.97 a pound.<\/p>\n
Why are gold prices falling now?<\/strong> How far has gold dropped from its recent peak?<\/strong> What are markets expecting from the Federal Reserve?<\/strong> How are other precious metals and copper performing?<\/strong>
Gold prices are declining due to a stronger U.S. dollar, rising expectations of Federal Reserve interest rate hikes, and a reduced safe-haven premium as geopolitical concerns ease and oil prices fall.<\/p>\n
Gold has fallen nearly 30% from its January record high of $5,595.46 an ounce, recently trading below $4,000 per ounce for the first time since November 2025.<\/p>\n
Futures pricing indicates roughly a one-third chance of a rate hike in July and a 66% probability of additional tightening by September.<\/p>\n
Silver is down 0.6% to $57.10 per ounce after a drop of more than 6% in the previous session, and platinum is 1.6% lower at $1,559.60 an ounce. Benchmark copper on the London Metal Exchange is up 0.6% to $13,112.95 a ton, while U.S. Copper Futures are flat at $5.97 a pound.<\/p>\n