Gold extended its decline for a sixth straight session on Monday to hit a near seven-month trough, as a robust dollar and prospects of higher U.S. interest rates took the shine off bullion.

Spot gold was down 0.9% by 1:52 p.m. EDT (1752 GMT) at $1,831.70 per ounce, its lowest level since early March. U.S. gold futures settled 1% lower at $1,847.20.

Reuters Graphics
Reuters Graphics

“There is a reckoning that interest rates are going to be higher for much longer, which has been the bearish element in the precious market. Gold prices could go below $1,800 in the near term,” said Jim Wyckoff, senior analyst at Kitco Metals.

“Trends in the currency markets tend to be stronger and longer-lasting. The appreciation of the U.S. dollar may not end anytime soon, pressuring the gold market.”

The U.S. dollar (.DXY) rose 0.6%, making bullion less attractive to other currency holders.

Traders are pricing in a 55% chance that the Federal Reserve will leave interest rates at the current range of 5.25%-5.50% this year, according to CME’s FedWatch tool.

Federal Governor Michelle Bowman said she remains willing to support another increase in rates if incoming data shows progress on inflation is stalling or proceeding too slowly. Fed Vice Chair for Supervision Michael Barr, however, said rates are “at or near” sufficiently restrictive level.

Since powering above the key $2,000-per-ounce level in early May, gold prices have fallen more than 11%, or $230, pressured by a sharp rise in benchmark U.S. Treasury yields, which makes the non-yielding gold less attractive.