Gold Falls as Dollar Gains and Rate Hike Odds Rise to 88%

The gold price fell to $4,350 on September 21 as investors weighed in on the prospects of another Federal Reserve interest-rate hike. Spot gold was down 0.6% at $4,350.39 an ounce by 11:40 a.m. ET.

A stronger U.S. dollar and rising expectations of further rate increases contributed to the decline. The dollar extended its gains after rising more than 1% last week, making gold more expensive for buyers using other currencies.

The Federal Reserve raised interest rates last week, and investors are now watching whether policymakers could tighten monetary policy again later this year. Traders were pricing in an 88% chance of another U.S. rate hike in December, according to the CME FedWatch probability cited by Reuters.