New Delhi, June 23 -- Gold prices could face further downside pressure in the near term as a strengthening US dollar, elevated bond yields and expectations of tighter monetary policy continue to weigh on investor sentiment, according to a report by the World Gold Council (WGC).

The precious metal extended its recent decline last week, with the LBMA Gold Price PM falling 0.8 per cent to close at USD 4,151 per ounce. The decline has taken gold nearly 5 per cent lower on a year-to-date basis, reflecting a challenging environment marked by a stronger greenback and higher interest rate expectations.

According to the WGC, market attention remains focused on whether the recent breakout in the US Dollar Index (DXY) above the psychologically imp...