Gold prices fell below $4,000 per ounce amid growing expectations of additional Federal Reserve interest rate hikes. Fed Governor Christopher Waller's recent remarks signaling a potential continuation of tightening monetary policy weighed heavily on the metal, as higher rates typically reduce gold’s appeal by increasing the opportunity cost of holding non-yielding assets. This shift in market sentiment triggered a broad sell-off across precious metals, with investors favoring higher-yielding instruments over bullion.
Geopolitical tensions further influenced the market, particularly following reports of a U.S. blockade near the Strait of Hormuz, which led to a sharp rise in oil prices. While energy shocks often boost demand for safe-haven assets like gold and silver, the strong dollar and rising yields have offset these traditional safe-haven dynamics. The interplay between inflationary pressures, central bank policy, and global instability continues to shape volatile trading patterns in the metals sector.