Gold slips below $4,000 as dollar strength, Fed hike bets weigh

Gold prices extended losses on Thursday, staying near a more than seven-month low as a stronger dollar and rising expectations of Federal Reserve interest rate hikes weighed on bullion.

Spot gold was down 0.4% at $3,985.89 per ounce as of 0043 GMT, after touching its lowest level since November 2025 on Wednesday.

US gold futures for August delivery fell 0.2% to $4,001.60.

Gold fell below the $4,000-per-ounce level on Wednesday for the first time since November 2025, pressured by the dollar’s strength and expectations of tighter US monetary policy.

Traders now expect three Federal Reserve rate hikes this year and are pricing in about a 67% chance of a September increase, according to the CME FedWatch Tool.

The US dollar rose for a third consecutive day on Wednesday and touched a 13-month high, making gold more expensive for buyers using other currencies.

US Treasury Secretary Scott Bessent on Wednesday welcomed Fed Chair Kevin Warsh’s plan to reduce forward rate guidance, but said policymakers should remain open-minded about the inflation impact of the Iran conflict.

Investors are awaiting US Personal Consumption Expenditures data, the Federal Reserve’s preferred inflation measure, due later in the day, for further signals on monetary policy.

In other precious metals, spot silver fell 0.2% to $57.33 per ounce and platinum declined 0.2% to $1,575.85.

Palladium rose 0.3% to $1,170.25.

Lebanon and Israel are also discussing a US-backed proposal under which Israeli forces would transfer some Lebanese territory occupied during the war with Hezbollah to Lebanon’s military, officials from both sides said.