Gold Price Hits $4,301 as Fed Rate Hike Bites

The gold price slipped to $4,301.79 an ounce on September 23, down 1.43% from the previous day's close of $4,307.

This decline comes despite a fall in crude oil prices this week, which should have helped support bullion by easing inflation pressure at the margin.

However, gold failed to hold above $4,350, indicating that rates rather than inflation are driving the metal's price.

The key reason for this is the Federal Reserve's rate hike on September 16 and the market's expectation of another increase in October, which raises the opportunity cost of holding a non-yielding asset like gold and strengthens the dollar.