Gold extends losses on Fed tightening outlook, dollar strength

Gold prices extended losses on Thursday, hovering near the more-than-seven-month low hit a day earlier, as the dollar held firm on ​rising expectations of Federal Reserve interest rate hikes.

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

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

Bullion fell below the key $4,000-per-ounce level for ​the first time since November 2025 on Wednesday, pressured by ⁠a stronger dollar and expectations of Fed rate hikes.

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

The US dollar advanced for a third straight day on Wednesday to hit a 13-month ​high, making gold more expensive for buyers holding other currencies.

US ​Treasury Secretary Scott Bessent on Wednesday applauded Fed Chair Kevin Warsh’s plan to reduce forward ‌rate ⁠guidance, but said Fed policymakers need to keep an open mind on the inflation impact of the Iran conflict.

Investors await the US Personal Consumption Expenditures data, the Fed’s preferred inflation gauge, due later ​in the day, ​for further cues ⁠on monetary policy.

Lebanon and Israel are discussing a US-backed proposal for Israeli forces to transfer some ​of the Lebanese territory invaded in their war with Hezbollah ​to Lebanon’s ⁠military, officials on both sides said, in a possible step towards restoring Lebanese control of occupied territory.

Spot silver fell 0.2% to $57.33 per ounce, ⁠platinum ​lost 0.2% to $1,575.85, while palladium gained 0.3% ​at $1,170.25.