NEW YORK / MENA Newswire / – Gold prices fell to a seven-month low on Wednesday as a stronger dollar and firmer U.S. Treasury yields pressured bullion. Spot gold dropped 1% to $3,964.97 an ounce after touching $3,942.99 in the previous session. That marked its lowest level since November and kept gold below the $4,000 mark.
U.S. gold futures for August delivery fell 1.5% to $3,977.70 an ounce. The decline extended a sharp pullback for the precious metal after a weak June and a difficult second quarter. Gold has faced pressure as higher yields raised the cost of holding an asset that pays no income.
The dollar strengthened against major currencies, making gold more expensive for buyers using other currencies. U.S. Treasury yields also moved higher as traders assessed interest-rate signals and upcoming economic data. The market focus remained on U.S. employment figures and the path of monetary policy.
Dollar strength weighs on bullion
Gold posted its steepest quarterly loss since 2013 and recorded its fourth monthly decline in a row. The metal fell about 11.2% in June, marking a major reversal after earlier gains. It also ended its first losing quarter since 2024 as rate expectations shifted across financial markets.
The Federal Reserve kept interest rates in focus as inflation concerns shaped trading in bonds, currencies, and commodities. The CME FedWatch Tool showed markets pricing about a 67% chance of a September rate increase. Higher rates often weigh on gold because investors can earn returns from interest-bearing assets.
Precious metals extend losses
Weakness spread across other precious metals during the session. Silver fell 2.1% to $57.34 an ounce, while platinum lost 1.1% to $1,534.32. Palladium declined 1.2% to $1,189.69, reflecting broader pressure across the metals market as the dollar held firm.
Gold remains closely watched by central banks, investors, jewelry buyers, and commodity traders because it often reacts to shifts in inflation, yields, and currency markets. Wednesday’s move placed bullion near its lowest level in seven months and underscored the pressure from dollar strength, Treasury yields, and interest-rate expectations.