Dollar Strength Weighs on Gold Prices Amid Prolonged Rate Hopes

Gold prices declined on Wednesday as investors weighed the prospect of central banks keeping interest rates elevated for longer in their efforts to curb inflation. Spot gold fell by 0.2% to $4,345.99 per ounce, while US gold futures for December delivery were up 0.2% at $4,382.70.

The dollar remained strong near its highest level in two months, making greenback-priced bullion more expensive for overseas buyers.

Kyle Rodda, senior financial market analyst at Capital.com, noted that 'short-term volatility in gold very much depends on how oil trades and the developments that happen in the Middle East.'

However, he added that long-term structural drivers for gold are still strong. Analysts at BMI maintained their 2026 gold price forecast at an average of $4,400 per ounce, citing elevated geopolitical risks and continued central bank purchases.