Gold Below $4000

Gold prices tumbled more than 3% to below $4,000 per ounce on Wednesday, hitting their lowest level since November 2025.

The precious metal came under pressure from a stronger US dollar and growing expectations that the Fed will maintain a hawkish stance, with traders increasingly betting on an interest-rate increase later this year.

Markets currently assign a roughly 68% probability of a Fed rate hike in September, up from 29% a week ago.

Bullion is now down about 5% year-to-date and nearly 20% below its January record high, reached before the outbreak of the conflict involving Iran.

Despite heightened geopolitical uncertainty, gold has struggled to retain its traditional safe-haven appeal during the war.

A surge in oil prices has fueled inflation concerns, prompting major central banks to adopt a more restrictive monetary policy stance and increasing the opportunity cost of holding non-yielding assets such as gold.