Gold prices extended their decline on Wednesday, slipping to the lowest level in nearly two weeks as investors grappled with a potent mix of rising US interest-rate expectations, a stronger dollar and a sharp technology-led equity selloff that has forced traders to raise cash by unwinding positions in precious metals.
Spot gold fell below $4,100 an ounce on Wednesday, extending losses after a 1.7 percent decline in the previous session. Bullion traded around $4,085 an ounce in early Asian trade, hovering near its lowest level in nearly two weeks, while US gold futures also moved lower.
The latest decline indicates a counterintuitive reality of financial markets: even assets considered safe havens can come under pressure during periods of broader market stress.
Why is gold falling?
One of the biggest drivers of the recent weakness has been a deepening selloff in global technology stocks. As AI-driven equities retreat from record highs, investors facing losses in stock markets have increasingly sold gold to raise liquidity and meet margin requirements elsewhere in their portfolios.