World gold prices continued to plummet in the trading session on June 25, fluctuating near a 7-month low as the USD maintained its strength and the market increasingly believed that the US Federal Reserve (Fed) would continue to raise interest rates this year.
According to records, spot gold price at 9:20 am on June 25 (Vietnam time) was listed around the threshold of 3,974.6 USD/ounce, a sharp decrease of 104.5 USD compared to the previous day.
A day earlier, this precious metal had fallen to its lowest level since November 2025. The US gold futures contract for August delivery also fell 0.2%, to 4,001.60 USD/ounce.
Notably, the trading session on June 24 witnessed gold prices lose the important psychological threshold of 4,000 USD/ounce for the first time since November last year. The decline of the precious metal mainly stemmed from the strong recovery of the greenback and expectations that the Fed will maintain tight monetary policy longer than expected.
Data from CME's FedWatch tool shows that investors currently forecast that the Fed may implement 3 waves of interest rate hikes this year. The possibility that this agency raises interest rates at the September meeting is valued by the market at around 67%.
Meanwhile, the USD has risen for the third consecutive session and hit a 13-month high. The strengthening greenback makes gold more expensive for investors holding other currencies, thereby reducing the attractiveness of this non-performing asset.
The market is also focusing its attention on the US Personal Consumption Expenditures (PCE) report - an inflation measure prioritized by the Fed. The results of this report are expected to provide more signals about the roadmap for interest rate management in the near future.
Besides the monetary factor, investors are still closely monitoring geopolitical developments in the Middle East. Lebanese and Israeli officials said that the two sides are discussing a US-backed proposal to transfer part of the Lebanese territory once controlled by Israel to the Lebanese army. This move is seen as a positive signal for the prospects of regional stability.
On other precious metals markets, spot silver prices decreased 0.2%, down to around 57.33 USD/ounce. Platinum fell 0.2% to around $1,575.85/ounce, while palladium rose 0.3%, reaching $1,170.25/ounce.
