Gold prices are falling from a peak of nearly $5,600 an ounce in late January, attributed to rising interest rate expectations and a stronger dollar.
Gold has entered bear market territory, sliding below US$4,000 an ounce for the first time since November 2025 as rising interest rate expectations and a strengthening dollar weigh heavily on bullion, though local traders argue the dip may not last long.Siriluck Pakotiprapha, vice-president of research at Hua Seng Heng Futures, said a decline below $4,000 has significant implications for gold, which has tripled in price over the past three years from about $1,800 an ounce in 2023.
The recent pullback, driven by a stronger US dollar, rising real yields and hawkish Federal Reserve signals, has resulted in gold prices tumbling roughly 28-30% from an all-time high of nearly $5,600 per ounce in January this year.
Spot gold was down 0.4% to $3,974.89 per ounce yesterday after hitting its lowest level since Nov 20 on Wednesday.
Traders expect three Fed rate hikes this year and are pricing in a 67% chance of a September increase, according to the CME FedWatch Tool.
