Gold prices stayed under pressure on Wednesday, hovering close to a seven-month low as firmer US Treasury yields and a cautious Federal Reserve interest rate outlook continued to weigh on investor sentiment.
Spot gold fell 1% to US$3,969.03 per ounce after briefly touching US$3,942.99 in the previous session, its weakest level since November 2025. The metal has now extended its broader downtrend after recording its biggest quarterly decline since 2013 in the second quarter of 2026, alongside a fourth straight monthly loss.
US gold futures for August delivery also eased 1.4% to US$3,982.90, reflecting continued selling pressure across the precious metals complex.
The move lower has been largely driven by rising Treasury yields and a firmer US dollar, both of which reduce the appeal of non-yielding assets like gold. Market expectations that the Federal Reserve could maintain a hawkish stance have further reinforced the downside pressure, with Cleveland Fed President Beth Hammack signalling that higher rates remain possible if inflation does not ease.
Traders are currently pricing in roughly a 67% chance of a rate hike in September, keeping markets sensitive to incoming US labour data including ADP employment figures and nonfarm payrolls due later this week.
Broader geopolitical tensions have also played into price swings, although they have failed to offset macroeconomic headwinds. Oil strength linked to Middle East developments has kept inflation concerns alive, indirectly supporting expectations for tighter policy.
In a separate technical view, RHB Investment Bank Bhd said the bearish setup for COMEX gold remains intact, with prices now firmly below both the 20-day and 50-day simple moving averages. The research house noted that momentum indicators continue to weaken, with the relative strength index trending lower, suggesting further downside pressure.
It added that gold has already broken below key support levels around US$4,000, with the next downside target seen at US$3,700 if selling momentum persists. Immediate resistance is now placed at US$4,400, with a stronger cap near US$4,650.
Other precious metals also weakened, with silver down 1.8% at US$57.53 per ounce, platinum slipping 0.6% to US$1,541.95 and palladium falling 1.4% to US$1,187.09.
