Dollar Surge Sends Gold Futures Plummeting

Gold futures declined by over 1% as the US dollar continued its four-day winning streak. The rise in the dollar was driven by hawkish commentary from Federal Reserve officials following the recent rate hike, increasing CME FedWatch Tool probabilities to a 50-50 chance of future policy moves.

The strong demand for gold from China remains an underlying support, with gold imports through August exceeding 1,000 tons. However, this could not counterbalance the negative impact of the rising dollar on gold prices.