It is the ninth day in a row that the price of the precious metal has fallen.
Since the war in Iran broke out, energy prices have skyrocketed. This has caused the market to position itself for interest rate hikes by the US Federal Reserve. As a result, many investors are selling gold to buy interest-bearing assets such as government bonds.
The scale of the gold sell-off is not unique, but the pace of the sell-off has been much faster than on several other historical occasions, Wayne Gordon, investment adviser at UBS, told Bloomberg.
The US dollar has strengthened since the war broke out, making it relatively more expensive for investors holding other currencies to buy gold.
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