Gold Lingers Near 7-month Low as Fed Hike Bets Boost Dollar

26/06/2026 03:05 AST

Gold fell for a third straight session on Thursday, lingering near a more than seven-month low it had reached in the previous session, as expectations of US rate hikes lifted the dollar and weighed on the precious metal.

Spot gold fell 0.5% to $3,982.49 an ounce by 1054 GMT. US gold futures for August delivery edged 0.3% lower to $3,997.60 per oz.

The US dollar hit its strongest level in more than 13 months on Thursday, making greenback priced-metals more expensive for other currency holders. Markets currently see a 66% chance that the US Federal Reserve will hike rates in September, CME FedWatch data showed, Reuters reported.

"The Fed's hawkish shift, which has led to a repricing of rate hike expectations, remains the dominant driver of gold's weakness," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com. ETF outflows and the rotation into equities driven by the AI boom are definitely factors weighing on the precious metal, said Tzabouras, noting that these forces tend to be cyclical and do not subtract from the broader structural case for gold.

Bullion has declined more than 6% since Fed's meeting last week and dipped below the $4,000 level on Wednesday for the first time since November 2025. Prices were down over 28% from its record high of $5,594.82 reached on January 29.

Investors now await the US Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due at 1230 GMT, forI further cues on monetary policy.


Asharq Al Awsat

Most Viewed Companies

Ticker Price Volume

Precious Metal Quotes

(In US Dollar) Change Change(%)
Gold 4,156.56 -53.55 -1.27
Silver 65.1 -0.74 -1.12
Platinum 1,668 -37.5 -2.2
Palladium 1,258.5 -24.5 -1.91

Recent News

Gold Drops Below Key $4,000 Level as Dollar Firms, Rate Hike Bets Rise

25/06/2026

Gold prices fell more than 3% and traded below a key psychological level of $4,000 per ounce, under pressure from a firmer US dollar and growing expectations of interest rate hikes.

Spot gol

Asharq Al Awsat

Seoul stocks soar in Asia tech rally after Micron blowout forecast

25/06/2026

South Korea's Kospi soared more than five percent in a tech-led surge across Asia on Thursday as a forecast-busting earnings report from US chip titan Micron helped traders brush off their latest wor

AFP

Dubai launches same-day gold trading contract, giving investors faster access and lower risk

24/06/2026

Dubai is making gold trading faster and simpler for investors with the launch of a new same-day (T+0) spot gold contract on the Dubai Gold and Commodities Exchange (DGCX). In practical terms, this me

Khaleej Times

Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talks

23/06/2026

Gold rebounded from a more than one-week low on Monday, as oil prices fell after Iran cited progress in US-Iran peace talks, though bets of higher interest rates after hawkish US Federal Reserve sign

Asharq Al Awsat

UAE gold prices gain Dh7.75 as Fed holds US interest rates

19/06/2026

Gold prices rose in the UAE on Thursday after the US Federal Reserve kept interest rates unchanged.

The 24K variant was trading at Dh519.75 at the market open on Thursday, up from Dh512 the

Khaleej Times

logo

Financial Information Co.

Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2025, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap