Gold prices fell more than 3% on Wednesday, slipping below $4,000 an ounce, their lowest level since November 2025.
The precious metal has come under pressure from a stronger U.S. dollar and rising expectations that the American Federal Reserve will maintain a restrictive monetary stance, with traders increasingly betting on higher interest rates later this year.
The bullion is now down about 5% year-to-date and sits roughly 20% below its January record, reached before the outbreak of the conflict involving Iran.
Gold struggles to maintain its traditional appeal as a safe-haven during the war. The surge in oil prices has fed inflation concerns, prompting major central banks to adopt tighter monetary policy and increasing the opportunity cost of holding non-yielding assets like gold.
