Gold Falls Over 2% on Intensifying Fed Rate Hike Bets

Gold's price fell by more than 2% in today's Asian session as market expectations for the US Federal Reserve to hike interest rates intensified. The USD remained relatively stable, but its negative correlation with gold's price was blurred. Worries about inflationary pressures also persisted due to high oil prices and renewed tensions in the Middle East.

The Reserve Bank of Australia (RBA) is expected to hike interest rates tomorrow, which could provide some support for the Australian dollar if accompanied by a hawkish forward guidance. However, this may not be enough to boost the currency, as the market expects another rate hike in December.