Gold Plummets to $4,311 as Rate Hike Odds Hold Steady
Spot gold prices dipped to $4,311 as investors remained confident in a 66% chance of a September rate hike by the Fed. The Federal Reserve's hawkish stance pushed Treasury yields higher and weighed on precious metals. Spot gold was trading near $4,327.70 an ounce, down 2.68%, while spot silver fell to $63.95, down 3.71%. The latest data showed a rise in July job openings to 7.3 million, but the August ISM manufacturing index slipped to 54.6 from 55.6.
The market positioning remains anchored in the post-Jackson Hole rate repricing and upcoming labor-market calendar. Wednesday's ADP employment report, Thursday's jobless claims, and Friday's August nonfarm payrolls report will be key catalysts for markets. A firm labor-market sequence would validate higher yields, while only a clear employment downside surprise could provide relief for gold.
The Strait of Hormuz remains a main geopolitical channel into oil, inflation expectations, and defensive demand. However, Tuesday's market impact came from inflation and rates rather than a gold-safe-haven bid. Higher crude prices strengthen inflation pressure, lift yields, and raise the opportunity cost of holding non-yielding metals.