Gold prices fall below $4,000 per ounce for 1st time since November 2025

Gold prices fell below $4,000 per ounce on Wednesday for the first time since November 2025, extending losses as expectations of tighter US monetary policy and easing geopolitical risks reduced demand for the safe-haven asset.

The precious metal dropped 3.3% on a day-on-day basis, sliding toward seven-month lows to around $3,974.60 an ounce as of 1310GMT.

Selling pressure increased after Federal Reserve officials left interest rates unchanged at their latest policy meeting but signaled growing support for future rate hikes. New Fed Chair Kevin Warsh also reaffirmed the bank’s commitment to restoring price stability, strengthening expectations that monetary policy could remain restrictive for longer.

Higher interest rate expectations typically weigh on gold, which does not offer interest income.

Gold also came under pressure as the interim US-Iran peace agreement eased concerns over energy supply disruptions and inflationary risks. Progress in talks between Washington and Tehran encouraged more traffic through the Strait of Hormuz, supporting expectations of smoother global energy flows.

A sharp decline in US technology stocks added to the pressure, as some investors trimmed bullion holdings to cover losses elsewhere in their portfolios.