Key Takeaways

• Gold breaches $4,000: Spot gold slipped 0.5% to $3,978.60 per ounce — hovering at its lowest in more than seven months after breaking below the key psychological level Wednesday for the first time since November 2025.
• Gold futures near $4,000: U.S. gold futures edged 0.4% lower to $3,993.80.
• 30% crash from January peak: Bullion has lost nearly a third of its value from the all-time record high of $5,595.46 reached in January.
• Dollar at 13-month high for sixth straight session: The greenback’s relentless rally is making gold increasingly expensive for overseas buyers.
• July hike at 33% probability: Markets price a one-in-three chance of a Fed move as soon as next month.
• September hike at 66%: Two-thirds probability of tightening by September, per CME FedWatch.
• ING’s assessment: “Gold’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.”
• Iran peace progress removes safe-haven bid: Easing geopolitical concerns and lower oil prices have eroded the risk premium that supported gold earlier this year.
• PCE data the key watch: The Fed’s preferred inflation gauge is due Thursday and will shape near-term rate hike expectations.
• Silver extends crash: Spot silver fell 0.6% to $57.10 — after plunging more than 6% Wednesday; ING warns “the strongest demand drivers are becoming less supportive.”
• Platinum slips further: Fell 1.6% to $1,559.60 after sliding 4.5% Wednesday.
• Copper edges up: LME copper gained 0.6% to $13,112.95 per ton; U.S. copper futures were flat at $5.97 per pound.

Gold prices extended losses on Thursday, hovering near their lowest levels in more than seven months, as a resurgent U.S. dollar and growing expectations of further Federal Reserve tightening eroded demand for the non-yielding metal.

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 tumbled below the key $4,000-per-ounce mark on Wednesday for the first time since November 2025.

The precious metal has now lost nearly 30% from its January record high of $5,595.46 an ounce.

Dollar’s Six-Day Rally and Rate Hike Bets the Twin Drivers

The decline came as the dollar remained pinned at a 13-month high after six straight sessions of gains, supported by increasing bets that the Fed may raise interest rates later this year.

Markets are pricing in a roughly one-third chance of a July rate hike and a 66% probability of tightening by September, according to CME FedWatch.

A stronger greenback makes dollar-denominated gold more expensive for overseas buyers, while higher interest rates raise the opportunity cost of holding bullion, which does not offer yields.

“Gold’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,” ING analysts said in a recent note.

Iran Peace Progress Removes Safe-Haven Premium

The latest slide also reflects a broader reassessment of safe-haven demand. Easing geopolitical concerns following progress in U.S.-Iran peace efforts and lower oil prices have reduced some of the risk premium that supported gold earlier this year.

Traders await U.S. Personal Consumption Expenditures data — the Fed’s preferred inflation gauge — for further clues on the policy outlook.

Among other precious metals, silver prices fell 0.6% to $57.10 per ounce after dropping more than 6% in the previous session.

“While the silver market is expected to remain in deficit, some of the strongest demand drivers are becoming less supportive,” ING analysts added.

Platinum prices slipped 1.6% to $1,559.60 per ounce, after sliding 4.5% on Wednesday.

Benchmark copper futures on the London Metal Exchange edged up 0.6% to $13,112.95 a ton, while U.S. copper futures traded flat at $5.97 a pound.