27.06.2026 12:38
The decline in gold prices continues unabated. With the strengthening dollar and expectations of Fed rate hikes, spot gold tested below $4,000 for the first time since November 2025, while the weekly loss approached 4%. Experts warned that if the selling pressure persists, the decline in gold could continue down to $3,400.
Spot gold tested below $4,000 for the first time since November 2025, pressured by a strong dollar and expectations of Fed interest rate hikes. With a weekly loss approaching 4 percent, experts warn the decline may continue.
Gold prices in global markets remain under pressure due to expectations that the US central bank will accelerate interest rate hikes to combat inflation, and a strengthening dollar index.
Spot gold fell sharply at the start of the day, dropping 0.9 percent to $3,991.49 per ounce. US gold futures for August delivery traded 1 percent lower at $4,007.30. Gram gold also edged down 0.3 percent, trading at 6,000 lira.
A FIRST SINCE NOVEMBER 2025
Spot gold has tested below the psychologically significant $4,000 level for the first time since November 2025, starting Wednesday. The metal is down nearly 4 percent on a weekly basis, marking its fourth consecutive week of decline.
EXPERT ISSUES ALARMING FORECAST
Kelvin Wong, Senior Market Analyst at OANDA, said the rapid pricing in of the Fed's hawkish moves has triggered a strong rally in the US dollar. Wong noted that this has sparked a downside breakout in gold prices. According to Wong, the correction process that began from the historic peak in January could extend to $3,400 in the long term.
US-IRAN TENSIONS AND INFLATION PRESSURE
Gold prices have lost approximately 29 percent from their all-time high of $5,594.82 on January 29, driven by global inflation concerns stemming from the US-Iran conflict and related interest rate hike expectations. US inflation rising above 4 percent in May, the highest in three years, has also reinforced rate expectations in the markets.
STRONG DOLLAR WEIGHS ON GOLD
The US dollar index has remained near its strongest levels since May 2025, heading for a second consecutive weekly gain. A stronger dollar makes gold more expensive for investors holding other currencies, while the high interest rate environment reduces the appeal of the non-yielding asset.
MARKETS EYE THE FED
According to CME FedWatch Tool data, markets are pricing in a total of three interest rate hikes by the Fed this year. The probability of a rate hike in September is priced at 64 percent. This expectation is seen as the main factor increasing selling pressure on gold.
SILVER AND OTHER METALS ALSO DECLINE
The sell-off was not limited to gold. Spot silver fell 3.2 percent to $56.01, platinum lost 2.4 percent to $1,563.20, and palladium dropped 1.6 percent to $1,165.93. Precious metals are set to close the week broadly lower.