Gold prices remained under pressure on Wednesday, extending recent losses as a stronger U.S. dollar dampened demand for the precious metal. Spot gold fell 0.5 per cent to $4,087.68 per ounce, touching its lowest level since June 11, while U.S. gold futures for August delivery dropped 1.1 per cent to $4,105.40.

The weakness was not limited to gold. Spot silver declined 1.1 per cent to $61.36 per ounce, platinum slipped 0.9 per cent to $1,637.34, and palladium fell 1.2 per cent to $1,223.29.

Why Are Gold Prices Falling?

Gold extended its decline as expectations of higher U.S. interest rates boosted the dollar to its strongest level in more than a year. A firmer greenback makes gold more expensive for overseas buyers, reducing its appeal and putting pressure on prices.

Market sentiment was also influenced by mixed signals surrounding U.S.-Iran negotiations. U.S. President Donald Trump claimed that Iran had agreed to indefinite nuclear inspections. However, Tehran rejected the assertion, stating that no such agreement had been made, raising uncertainty over the future of the fragile diplomatic process.

Will Gold Prices Fall Further?

Analysts believe gold could remain volatile in the near term as investors closely monitor U.S. monetary policy, dollar strength, and geopolitical developments. Any signs of prolonged higher interest rates or continued strength in the dollar may keep pressure on bullion prices, while renewed geopolitical tensions could revive safe-haven demand and support gold.