Abu dhabi: Gold prices fell to a more than seven-month low on Wednesday and traded below the key $4,000-per-ounce level, due to pressure from a firmer US dollar and growing expectations of interest rate hikes. Spot gold fell 3.3% to $3,973.79 an ounce as of 2:00 p.m. EDT (1800 GMT), after hitting its lowest level since November 2025. US gold futures settled 3.4% lower at $4,008.80.
According to Emirates News Agency, the decline in gold prices is attributed to the strengthening of the US dollar and the increasing anticipation of further interest rate hikes. These factors have contributed to the pressure on gold, pushing it below the crucial $4,000-per-ounce threshold. The market closely monitors these economic indicators, which have significant impacts on the valuation of gold.
The current trend marks a significant shift from previous months, where gold prices showed relative stability. The fluctuations in gold prices are influenced by various global economic factors, with currency valuation and interest rate expectations being prominent. As investors react to these changes, the gold market continues to experience volatility, reflecting broader economic trends.