Gold prices continued to fall on Wednesday, reaching a two-week low as the strong U.S. dollar and expectations of a Federal Reserve rate hike weighed on the market.
Spot gold dropped 1.1% to $4,067.72 per ounce, while U.S. Gold Futures fell 1.6% to $4,083.60 per ounce.
The stronger U.S. dollar has reduced demand for gold, as it makes the precious metal more expensive for those using other currencies.
Investors are also bracing for another potential rate hike by the Federal Reserve, which could make other investments more attractive than gold.
Markets are currently pricing in a 70% chance of a Fed rate hike by September and a 100% chance of another rate increase by December.
Analysts say the stronger dollar and expectations of higher interest rates outweigh gold's safe-haven appeal, contributing to its decline.
Gold prices have fallen in five of the last six trading sessions and have recorded three straight weekly losses.
Despite the decline, gold prices are still 23.83% higher than their 52-week low.
