Fujairah: Gold prices extended losses on Thursday, hovering near the more-than-seven-month low hit a day earlier, as the dollar held firm on rising expectations of Federal Reserve interest rate hikes. Gold prices are showing no signs of recovery as market sentiments around the Federal Reserve's monetary policy continue to influence investor decisions.

According to Emirates News Agency, spot gold was down 0.4 percent at $3,985.89 per ounce, as of 00:43 GMT, after hitting its lowest level since November 2025 on Wednesday. The ongoing speculation regarding potential interest rate hikes by the Federal Reserve has contributed to the strengthening of the dollar, which in turn has exerted downward pressure on gold prices.

US gold futures for August delivery also saw a decline, losing 0.2 percent to settle at $4,001.60. The broader market sentiment appears to be cautious, with investors closely monitoring the Federal Reserve's next move, as any indication of tightening monetary policy could further bolster the dollar and impact gold prices.

In the precious metals market, spot silver fell by 0.2 percent to $57.33 per ounce. Platinum also recorded a loss of 0.2 percent, bringing its price down to $1,575.85 per ounce. In contrast, palladium experienced a slight increase, gaining 0.3 percent to reach $1,170.25 per ounce. These movements reflect the broader uncertainty surrounding the commodities market as it navigates the implications of potential changes in US monetary policy.