The U.S. Dollar Index, which tracks the dollar against a basket of major international currencies, rose 0.12% to 97.17 on Wednesday, its highest level since March.
An interest rate hike also weighs on gold prices since the precious metal pays its investors nothing and struggles to compete with yield-bearing assets when rates rise.
Related: Safety ETF Plays Rally on Brexit Concerns
Moreover, concerns over economic instability in a post-Brexit world have subsided, further pressuring the precious metals market. The shift away from safe-havens toward riskier assets has diminished the attractiveness of bullion.
“Gold had everything going for it,” Bill O’Neill, a broker at LOGIC Advisors, told the Wall Street Journal. “Now we’re in a period where things are a lot calmer…The perfect playing field that existed for gold is not in play for the short term.”
PowerShares DB U.S. Dollar Index Bullish Fund