Gold prices continued their downward trend on Thursday, as one ounce fell below $4,060. The decline extended losses from recent trading sessions and pushed the precious metal to its lowest level in months.
During the last three trading sessions, gold lost nearly $300 per ounce. Early trading on Thursday pushed prices down to $4,022 per ounce. That level marked the lowest point since November 21 and highlighted gold’s weakest performance in the past six months.
Investors now focus on important U.S. economic reports due later in the day. Market participants closely watch retail sales and Producer Price Index (PPI) figures because these reports could shape the short-term direction of gold prices.
Wednesday’s inflation data already weighed heavily on the market. The report showed that consumer prices increased and reached their highest level in three years. As a result, investor sentiment weakened and added further pressure on gold. Futures contracts for the metal also moved lower and traded near $4,111 per ounce.
Financial market analyst Matt Simpson of StoneX said the $4,000 level remains a major psychological support point. He explained that many investors may enter the market near that level to seek quick profits. Investors who suffered losses during the recent decline may also return to the market as prices approach the $4,000 mark.
Investors traditionally consider gold a safe-haven asset during periods of uncertainty. However, renewed tensions in the Middle East and the ongoing dispute between the United States and Iran failed to provide enough support for prices. Despite rising geopolitical risks, investors continue to focus on economic indicators and monetary policy expectations.
Recent market surveys show that more than 70% of traders now believe the U.S. Federal Reserve could raise interest rates further to control inflation. Higher interest rates generally reduce gold’s appeal because the metal does not generate interest income.
Meanwhile, the U.S. military announced a new round of strikes against several targets inside Iran. The operation followed fresh warnings from President Donald Trump, who threatened additional action if both sides fail to reach a peace agreement. Even so, economic data remains the primary factor driving gold prices.
The next set of U.S. economic reports will likely determine whether gold stabilizes or extends its recent decline.
