Gold Prices Fall on Wednesday Morning as Broad Market Sell-Off Intensifies
Gold prices extended their losses during Wednesday's trading session as a widespread sell-off across global financial markets weighed on investor sentiment.
According to Bloomberg data, as of 07:43 WIB, August 2026 gold futures on the Commodity Exchange (COMEX) fell 0.83% to $4,115.10 per troy ounce, down from the previous session's close of $4,149.40 per ounce.
The decline in gold prices was largely driven by heavy selling pressure across financial markets, particularly in the technology sector.
Technology Stock Sell-Off Weighs on Gold
Gold moved closer to the monthly lows reached earlier this month as technology stocks led a broader downturn in global equity markets.
The weakness in the technology sector added further pressure to precious metals, with investors increasingly concerned that persistent inflation risks could prompt the Federal Reserve to maintain a restrictive monetary policy stance.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold by increasing the opportunity cost of holding the precious metal.
Federal Reserve Policy Remains a Key Driver
“Federal Reserve rate adjustments, combined with resilient US macroeconomic data, have played a major role in driving the recent decline in gold prices,” said Michael Hsueh, an analyst at Deutsche Bank, in a research note.
Strong economic indicators have reinforced expectations that the Federal Reserve may keep interest rates elevated for longer than previously anticipated, supporting the US dollar and putting additional pressure on bullion prices.
Deutsche Bank Cuts Gold Price Forecast
Reflecting the changing market outlook, Deutsche Bank has revised its gold price forecast lower for the third quarter of 2026.
The bank now expects gold to average $4,300 per troy ounce during Q3 2026, down from its previous projection of $4,800 per ounce.
The downgrade highlights growing concerns that tighter monetary conditions and stronger economic data could continue to limit upside momentum in the gold market over the coming months.