Gold held near $4,000 an ounce on Thursday, hovering close to its lowest level in almost eight months as a stronger US dollar and mounting expectations of further Federal Reserve rate hikes continued to pressure prices. The dollar climbed to its highest level in more than a year against a basket of major currencies, making dollar-denominated commodities such as gold more expensive for holders of other currencies.
Last week, the Fed left interest rates unchanged but signaled growing support for a tighter monetary stance, with Chair Kevin Warsh underscoring his determination to bring inflation under control. Markets are now pricing in a possible rate increase in September, with additional hikes potentially following before the end of the year. These expectations have outweighed the otherwise supportive impact of progress in US-Iran peace talks, which has pushed oil prices back to pre-conflict levels and significantly eased inflationary pressures.
