Gold prices tumble as US dollar hits multi‑year highs and Fed rate hikes loom

Gold fell sharply across global markets, with spot prices dropping 2‑3 % to around $4,100 per ounce – the lowest level in more than seven months. In Saudi Arabia, the metal slipped more than 2 % to $4,099.84, while in Lebanon it lost over 2 % to $4,087.68. The decline coincided with the US dollar reaching its highest level since 2025, buoyed by expectations that the Federal Reserve will raise interest rates later this year. Investors are watching upcoming US Personal Consumption Expenditures (PCE) data for clues on future policy. The falling price of gold was echoed in other precious metals: silver fell around 4 % to $62.70 per ounce, platinum slipped 2 % and palladium dropped 2 %.

Analysts linked the sell‑off to a stronger dollar and heightened expectations of tighter monetary policy, which make non‑yield‑bearing assets like gold less attractive. Despite the drop, some central banks are increasing gold reserves, signaling continued demand for the metal as a hedge against financial system stress.