Spot gold was down 0.9 per cent at $4,169.44 per ounce. It has been trading below the 200-day moving average since June 5. U.S. gold futures fell 1.72 per cent to $4,172.90. Analysts said the bullion market remained under pressure as investors increasingly favoured the dollar amid expectations that US interest rates could stay elevated for higher. The latest decline marks a sharp reversal from the record highs seen earlier this year, with gold now headed for a third weekly loss.
"Gold faces a distinct risk of dropping deeper into bear market territory and below the $4,000/oz mark, as the precious metal continues to navigate a challenging environment," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu. com.
