Gold prices held near a seven-month low on Tuesday, remaining ​on track for its worst quarterly performance since the second quarter of 2013, as dollar remained firm amid expectations ​of U.S. ​interest rate hikes.

Spot gold inched up 0.2% at $4,022.29 per ounce, as of 0923 GMT, after touching its lowest level since November 2025 earlier in the session. U.S. ⁠gold futures for August delivery lost 0.1% to $4,036.50/oz.

 

"The failure to sustain gains (for gold) highlights the current fragile sentiment, where traders continue to sell into strength rather than buy into weakness, a notable shift from the behaviour seen over the past few years," said Saxo Bank analyst Ole Hansen.

Bullion was ​down more than ‌11% for the ⁠month, on track ⁠for a fourth straight monthly decline. The precious metal was also poised for its first quarterly loss since ​2024 and its biggest quarterly percentage drop since the June quarter of ‌2013.

"Prices first need to break above $4,100 before it is reasonable ⁠to consider that a low may have been established," Hansen added.

Further weighing on bullion was a stronger dollar, set for a second straight monthly gain as markets priced in higher odds of Fed rate hikes.

Higher energy prices fuelled by the Middle East war erased market expectations of U.S. rate cuts this year, with traders currently seeing a 64% probability of an increase in September, the CME FedWatch data showed.

Although gold is seen as an inflation hedge, higher interest rates tend to weigh on the non-yielding metal.

Focus is now turning to upcoming ‌U.S. employment data, including the ADP report and nonfarm payrolls, for ⁠clues on the U.S. central bank's future rate path.

Oil was on ​track for its worst quarter since early 2020 as traders assessed prospects for renewed U.S.-Iran diplomacy, though Iran said reports of talks in Doha this week were unfounded.

Elsewhere, spot silver rose 0.6% to $58.64 per ​ounce, platinum gained 0.2% ‌to $1,577.14 and palladium inched up 1.04% to $1,266. All three metals were ⁠headed for quarterly and monthly losses.