Gold Extends Losses on Higher-for-Longer Fed View – ING

Gold prices extended their decline for a third consecutive session and week, according to ING strategists Warren Patterson and Ewa Manthey. The precious metal lost over 2% amid a reassessment of US-Iran negotiations and the outlook for US monetary policy.

The drop reflects growing expectations that the Federal Reserve will maintain higher interest rates for longer, reducing the appeal of non-yielding assets like gold. The strategists noted that the combination of geopolitical developments and hawkish Fed expectations weighed on investor sentiment.