Gold Price Plummets as Fed Rate Hike Looms

The gold price in the UK has dropped to £105.22 per gram for 24K gold, its lowest point since early August, due to the prospect of a Federal Reserve rate increase.

This decline is part of a broader trend of non-interest-bearing assets being weighed down by persistently high policy rates on both sides of the Atlantic.

Analysts at Goldman Sachs maintain that structural demand from central banks rotating away from US Treasury reserves will reassert itself, leading to a 12-month target of $4,650 per troy ounce for gold.