XAU/USD falls for a third day near year-to-date lows amid hawkish Fed bets and geopolitical tensions boosting the dollar.
Gold prices extended losses below $4,000 during Wednesday’s Asian session, marking a third consecutive day of declines. The precious metal remains near its lowest level since November 2025, pressured by a stronger US dollar and rising Fed rate hike expectations.
US job openings rose to 7.594 million in May, a two-year high, while consumer confidence improved in June. Cleveland Fed President Beth Hammock signaled potential support for higher rates, reinforcing hawkish sentiment. Geopolitical risks, including stalled US-Iran talks and Strait of Hormuz tensions, further bolstered the dollar’s safe-haven appeal.
The combination of resilient US labor data and inflation concerns has kept Fed tightening prospects alive, weighing on non-yielding assets like gold.