Gold slides to two-week low near $4,050 as Fed rate hike bets lift dollar

Gold prices extended their slide into a second consecutive day, dropping to a fresh two-week low near $4,050 during the Asian session. The yellow metal has now recorded a negative move in five of the past six trading days.

The decline was driven by renewed dollar strength, as markets priced in a higher probability of additional Federal Reserve rate hikes. A stronger dollar makes gold more expensive for holders of other currencies, weighing on demand.

Traders are now watching for further cues from upcoming US economic data and Fed commentary, which could determine whether the metal finds support or continues its downward trajectory.