Gold prices extended their losses for a third consecutive session during Asian deals on Wednesday, falling below the US$4,000 an ounce mark as a stronger United States dollar and rising Treasury yields reduced demand for the precious metal.
By 3:55 pm AEST (5:55 am GMT), spot gold was down 0.8% at $3,974.50 an ounce, trading near its lowest level since November 2025.
The decline came despite several recent attempts by bullion to reclaim the $4,000 level, with persistent buying of the U.S. dollar continuing to pressure the precious metal by making it more expensive for holders of other currencies.
The greenback remained supported by heightened geopolitical uncertainty in the Middle East, growing expectations that the U.S. Federal Reserve will raise interest rates again, and continued strength in the U.S. dollar against the Japanese yen.
Markets remain cautious after the United States and Iran exchanged military strikes over the weekend amid the ongoing dispute surrounding the Strait of Hormuz.
While diplomatic efforts continue, uncertainty over the prospects for a lasting peace agreement and the durability of the fragile ceasefire has maintained demand for the U.S. dollar as a safe-haven asset.
The Wall Street Journal reported on Wednesday that U.S. President Donald Trump had recently consulted Defence Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff General Dan Caine about the possibility of renewed conflict with Iran.
However, the report said Trump had, for now, chosen to prioritise diplomatic engagement.
Economic data also supported the U.S. currency after Tuesday's stronger-than-expected Job Openings and Labor Turnover Survey (JOLTS) reinforced expectations that the Federal Reserve could tighten monetary policy further.
According to the CME Group FedWatch Tool, markets are now pricing in approximately a 66.9% probability of a September interest rate hike.
Investor attention now turns to the European Central Bank's annual Forum on Central Banking in Sintra, Portugal, where Federal Reserve Chair Kevin Warsh is scheduled to participate in a key policy panel later in the session.
Markets will closely monitor Warsh's remarks for further guidance on the central bank's policy outlook after his unexpectedly hawkish debut as Federal Reserve chair last month prompted investors to scale back expectations for near-term interest rate cuts.
