Commodities
Gold Plummets as Middle East Tensions Fuel Rate-Hike Fears
Gold prices plummeted to their lowest in over three weeks as escalating Middle East tensions fueled inflation and rate-hike fears. The conflict between the US and Iran has pushed oil prices higher for a third straight session, stoking concerns about rising costs.
Spot gold hit $4,304.01 per ounce on September 2, its lowest since August 7, as it fell 0.6%. US gold futures also dropped 1% to $4,350.80.
The Federal Reserve's policy meeting in September has seen traders price in a 67% chance of a rate hike, according to the CME FedWatch Tool. This would limit any rebound potential for gold as higher interest rates weigh on its appeal due to its lack of yield.