Gold Prices Slip to Seven-Month Low as Fed Rate Outlook Fuels Sell‑off

Gold fell more than 1% on Wednesday, trading near the lowest level in the past seven months. Spot prices dropped to about $4,026 per ounce, marking the first quarterly decline since 2013 and an 11.2% fall for the month, roughly 23% since the start of the Iran‑US conflict in February.

The slide is driven by higher U.S. Treasury yields and a strong dollar, reinforcing expectations that the Federal Reserve will keep interest rates elevated. Traders see a 64‑67% probability of a September rate hike, according to the CME FedWatch Tool. Despite a recent spike in oil prices from renewed U.S.–Iran tensions, the gold market remains focused on inflation and monetary‑policy risks. Silver also slipped, down 2.74% to $57.82 per ounce.