Gold lingers near 7-month low as Fed hike bets boost dollar

FE Team | Published: June 25, 2026 22:48:25

Gold fell for a third straight session on Thursday, lingering near a more than seven-month low it had reached in the previous session, as expectations of US rate hikes lifted the dollar and weighed on the precious metal, reports Reuters.
Spot gold fell 0.5 per cent to $3,982.49 an ounce by 1054 GMT. US gold futures for August delivery edged 0.3 per cent lower to $3,997.60 per oz.
The US dollar hit its strongest level in more than 13 months on Thursday, making greenback priced-metals more expensive for other currency holders.
Markets currently see a 66 per cent chance that the US Federal Reserve will hike rates in September, CME FedWatch data showed.
"The Fed's hawkish shift, which has led to a repricing of rate hike expectations, remains the dominant driver of gold's weakness," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
ETF outflows and the rotation into equities driven by the AI boom are definitely ?factors weighing on the precious metal, said Tzabouras, noting that these forces tend to be cyclical and do not subtract from the broader structural case for gold.
Bullion has declined more than 6 per cent since Fed's meeting last week and dipped below the $4,000 level on Wednesday for the first time since November 2025.
Prices were down over 28 per cent from its record high of $5,594.82 reached on January 29.