Spot gold prices dipped to $4,233.12 per ounce on Sept. 28, marking a decline of more than 1% for the trading session. This price drop coincided with a broader liquidiation of precious metals that erased more than $500 billion in combined market value for gold and silver within a three hour window, extending a slump that has lasted all week.

A geopolitical impasse over the Strait of Hormuz has kept energy costs elevated, which maintains pressure on the Federal Reserve to raise interest rates to combat sticky inflation. These macroeconomic factors have driven the retreat from bullion, which typically faces headwinds as interest rate expectations rise.