Ammon News - Gold ‌extended losses on Thursday, after falling to a more than seven-month low a day earlier, as the dollar continued to gain on rising bets of U.S. rate hikes this year.

Spot ​gold was down 0.2% at $3,993.33 per ounce, as of 0526 GMT. U.S. gold ​futures for August delivery were steady at $4,008.30.

Bullion fell below the $4,000 level ⁠for the first time since November 2025 on Wednesday, and is down ​29% from a record high of $5,594.82 reached on January 29.

"Gold is simply in a ​bearish momentum trade at this point amid a strong U.S. dollar environment," said Matt Simpson, a senior analyst at StoneX.

High U.S. inflation, fuelled by the Iran war, and a hawkish ​Fed have contributed to expectations of a rate hike.

Traders expect three Fed rate ​hikes this year and are pricing in about a 67% chance of a September increase, ‌according ⁠to the CME FedWatch Tool.

Bullion-backed exchange-traded funds could face renewed outflows if expectations rise for rate hikes, analysts say.

While gold is traditionally seen as an inflation hedge, it loses its appeal as a non-yielding asset in a high-interest-rate environment.

The dollar held ​firm near a ​13-month high, making ⁠gold more expensive for buyers holding other currencies.

Investors now await the U.S. Personal Consumption Expenditures data, the Fed's preferred inflation ​gauge, due later in the day, for further cues on ​monetary policy.

They also monitored the ⁠Middle East as Lebanon and Israel discussed a U.S.-backed proposal for Israeli forces to transfer some of the Lebanese territory captured in their war with Hezbollah to Lebanon's military.

Spot ⁠silver fell ​0.1% to $57.37 per ounce and platinum lost 0.8% to $1,566.25, both ​hovering near their lowest levels since November 2025. Palladium inched 0.4% higher to $1,171.25 but was near a ​nine-month low.


Reuters