Gold Falls Below Key Threshold as Rate Hike Expectations Rise

Gold prices plummeted on Tuesday as inflationary pressures and expectations of a Federal Reserve rate hike took center stage, pushing the precious metal below a key resistance threshold.

The December contracts for gold shed $77.20, or 1.72%, to close at $4,400 per ounce, marking a decline from the $4,474 mark.

Market participants largely anticipate a rate hike at next week's gathering, which has driven expectations to 60/40 in favor of a quarter-point adjustment, bringing the federal funds rate to between 3.75% and 4.00%.

The interest-rate trajectory story now governs gold pricing, with energy markets amplifying inflation concerns as West Texas Intermediate crude advanced another 1.69% on Tuesday, trading above $93 per barrel.