Gold prices dropped to their lowest level in two months on Thursday as broader weakness across precious metals markets continued amid pressure from stronger market sentiment and shifting interest rate expectations.
Spot gold fell 1.7% to US$4,380.62 per ounce as of 04:09 GMT after earlier touching its weakest level since March 26.
US gold futures for June delivery declined 1.6% to US$4,377.10.
The sharp decline in bullion prices came as investors continued to reassess demand for safe-haven assets amid easing geopolitical concerns and expectations that major central banks could maintain higher interest rates for longer.
A stronger US dollar and rising bond yields also weighed on gold, which typically becomes less attractive in a higher-rate environment because it does not generate interest income.
Other precious metals also posted steep losses during the session.
Spot silver dropped 3% to US$72.37 per ounce, while platinum slipped 1.4% to US$1,890.81, with both metals touching near one-month lows.
Palladium fell 1.9% to US$1,364.26.
Analysts said markets remain highly sensitive to inflation data, central bank commentary, and movements in energy prices, all of which continue to influence expectations around global monetary policy.
