Gold Near Seven-Month Low as Rate Hike Fears Grow
Gold prices remained near a seven-month low on Thursday as investors reacted to growing expectations that the U.S. Federal Reserve could raise interest rates again. Spot gold traded around $3,999 per ounce, while futures edged lower, extending losses after the metal fell below the key $4,000 level for the first time since November 2025.
Market sentiment has been weighed down by the Fed’s recent hawkish stance, with traders now seeing a higher probability of a rate hike in September. Analysts say rising interest rate expectations, combined with investor shifts toward equities amid the ongoing AI-driven market rally, have reduced demand for the non-yielding precious metal.
Gold has dropped more than 6% since last week’s Federal Reserve meeting and is down over 28% from its January record high. Investors are now closely watching upcoming U.S. inflation data, particularly the Personal Consumption Expenditures (PCE) report, for further clues on the Fed’s next policy move. Meanwhile, silver gained slightly, platinum eased, and palladium posted modest gains.
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