Gold prices fell below $4,550 an ounce during trading on Wednesday, hitting their lowest level in a month, pressured by rising energy prices and an increasingly hawkish tone from major central banks.
Energy markets saw further gains towards the end of the month, following statements by President Donald Trump ruling out an imminent agreement with Iran without a deal on its nuclear program, which led to the continued suspension of energy exports from the Middle East and pushed oil and gas prices higher.
These developments have been reflected in the attitudes of policymakers at the Federal Reserve, as a number of members of the Federal Open Market Committee opposed the bank's move towards easing, despite its decision to keep interest rates unchanged.
High interest rates typically reduce the attractiveness of non-yielding assets such as gold, thus weakening demand for the precious metal.
At the same time, the Bank of Japan signaled a more hawkish tone during its latest meeting, reinforcing the global trend towards tighter monetary policies.
Investors are awaiting the interest rate decisions from both the European Central Bank and the Bank of England, due tomorrow, for further clues about the direction of global monetary policy.