New york: Gold prices fell on Wednesday to their lowest level in more than seven months, pressured by a stronger dollar and expectations of a US interest rate hike. Spot gold prices dropped 2.5 percent to $4,006.29 an ounce, marking their lowest point since last November. US gold futures also fell 3 percent to $4,023.30 an ounce.

According to Qatar News Agency, the stronger dollar has contributed to making gold more expensive for buyers holding other currencies. This depreciation in gold has coincided with a rise in investor expectations of a US interest rate hike this year. The US Federal Reserve recently tightened its monetary policy stance amid ongoing concerns about inflationary pressures resulting from the conflict in the Middle East.

The decline in gold prices was accompanied by a fall in other precious metals. Silver fell 5 percent in spot trading to $58.96 an ounce, reaching its lowest level since last December. Similarly, platinum declined 4 percent to $1,586.55, and palladium dropped 5.2 percent to $1,173.23.