Gold prices fell below $4,000 per ounce on Wednesday for the first time since November 2025, extending losses as expectations of tighter U.S. monetary policy and easing geopolitical risks reduced demand for the safe-haven asset.
The precious metal declined by 3.3% on a daily basis, falling to around $3,974.60 per ounce, its lowest level in approximately seven months, according to Anadolu Agency.
Selling pressure increased after officials of the U.S. Federal Reserve left interest rates unchanged at their latest policy meeting but signaled growing support for future rate hikes.
The Federal Reserve’s new Chair, Kevin Warsh, also reaffirmed the central bank’s commitment to restoring price stability, reinforcing expectations that monetary policy could remain restrictive for a longer period.
Expectations of higher interest rates typically weigh on gold prices, as the precious metal does not generate interest income.
