The decline reflects shifting expectations that central banks may keep borrowing costs elevated for longer, reducing demand for the non-yielding asset.
• Spot gold fell to its lowest level in seven weeks as the dollar strengthened and Treasury yields climbed.
• Traders increased bets on additional rate hikes or a delayed easing cycle, putting fresh pressure on bullion.
• Higher yields raise the opportunity cost of holding gold, which does not pay interest or dividends.
• Market attention is now focused on upcoming inflation data, employment figures and central-bank signals for clues about the path of monetary policy.
• Despite the recent pullback, gold remains supported by geopolitical uncertainty and continued demand from central banks.
The latest move underscores how sensitive precious metals remain to interest-rate expectations. A stronger dollar also makes gold more expensive for buyers using other currencies, potentially limiting physical demand. Analysts say the metal could remain volatile as investors weigh persistent inflation against signs of slowing economic growth.