Why gold is losing its shine: Fed hints, strong dollar and waning safe‑haven demand

The latest drop in gold prices follows fresh comments from the U.S. Federal Reserve indicating that additional rate hikes remain possible this year. Higher rates make non‑yielding assets like gold less attractive, prompting investors to shift toward interest‑bearing alternatives. At the same time, the U.S. dollar has appreciated against the rupee, further squeezing bullion prices. Coupled with a reduction in safe‑haven buying as market sentiment improves, these factors have accelerated the correction that began in early June.