Gold prices continued their decline on Thursday, hovering near their lowest level in over seven months recorded in the previous session, amid a strong dollar fueled by increasing expectations of a rise in U.S. interest rates.
As of 00:43 GMT, spot gold fell 0.4% to $1,985.89 per ounce, after having hit its lowest level since November 2025 on Wednesday. U.S. gold futures for August delivery dropped 0.2% to $2,001.60.
The price of gold fell below the key $2,000 per ounce level under pressure from the rising dollar and the anticipated interest rate hikes by the U.S. Federal Reserve.
According to CME's FedWatch tool, traders are expecting three interest rate hikes in the U.S. this year, with around a 67% chance of a hike in September.
The dollar rose for the third consecutive day on Wednesday, reaching a 13-month high, which increased the cost of gold for buyers holding other currencies.
Investors are awaiting the release of U.S. Personal Consumption Expenditures (PCE) data, the Federal Reserve's preferred inflation measure, due later today to gain more insights into monetary policy directions.
As for other precious metals, spot silver decreased by 0.2% to $57.33 per ounce, platinum declined 0.2% to $1,575.85, while palladium rose 0.3% to $1,170.25.