Gold prices continued their downward slide on Thursday, struggling to recover after hitting a seven-month low earlier in the week. The persistent strength of the U.S. dollar, fueled by growing market speculation regarding Federal Reserve interest rate hikes, has created a challenging environment for bullion. As of Thursday morning, spot gold dipped slightly to $1,993.33 per ounce, struggling to regain the $2,000 threshold that was breached just yesterday. This decline marks a significant correction for the precious metal, which has shed roughly 29% of its value since reaching record highs in January.

Market analysts point to a "bearish momentum" driven by aggressive monetary policy expectations, particularly as investors recalibrate their portfolios in response to rising inflation and the Fed's hawkish stance. With the CME FedWatch Tool suggesting a high probability of multiple rate hikes this year, non-yielding assets like gold are losing their traditional appeal as a hedge against inflation. Investors are now closely monitoring upcoming U.S. Personal Consumption Expenditures data and geopolitical developments in the Middle East for further direction, while other precious metals like silver and platinum remain tethered to their own multi-month lows.