Fed Hawkishness Sends Gold Prices Plummeting

Gold prices plummeted by 1.7% to $4,282.53 an ounce as Federal Reserve officials' hawkish comments boosted the US dollar to a two-month high.

The Fed's message that inflation may not cool as quickly as hoped revived expectations for another rate hike, putting pressure on bullion.

Higher interest rates tend to make holding gold less appealing due to higher returns on cash and bonds, while a stronger dollar makes the metal more expensive for buyers using other currencies.