Reported news highlight a hit on the Australian gold stocks (ASX:AXGD), which experienced a drop of as much as 2.0% reaching their lowest level since August 23.

The sub-index seems to be following a downward trend with its third consecutive session of decreases.

The declining bullion prices, which slumped as the U.S.

dollar strengthened amidst speculation for continued high interest rates, are considered a determining factor in the underperformance of the gold stocks.

Key mining players Newcrest Mining (ASX:NCM) and Northern Star Resources (ASX:NST) suffered from the downturn, sinking up to 2.3% and 1.9%, respectively.

Furthermore, Newcrest Mining grappled with its lowest level since September 13, while Northern Star Resources dropped to its earlies level since August 23.

As of the last close, AXGD had gained 10.2% this year.

AXGD represents Australian gold stocks within the larger financial market landscape.