Gold Price Plummets Over 3% Amid Soaring Yields and Hawkish Fed

The price of gold plummeted by over 3% to $4,139 as US Treasury yields surged to their highest level since June 2007 at 5.27%, sparking a brutal sell-off in the market.

This sharp increase in yields was triggered by persistent inflation concerns and the Federal Reserve's hawkish stance on interest rates, with Fed Governor Lisa Cook expecting continued inflationary pressure in the coming months.

The surge in yields also fueled expectations of additional interest rate hikes, with a 25-basis-point rate hike now priced in at 65% for the October meeting and almost certain to occur at the December meeting with odds of 94%.