Commodities
Gold Price Plunges 7% from Three-Month Peak Amid Stronger Dollar and Rate Hike Fears
Gold and silver prices have been under pressure in recent trading days, with gold falling close to 7% from its three-month peak. Spot gold slipped to $4,304 per ounce on September 2, while US gold futures sat near $4,351 per ounce.
The decline is attributed to several factors, including a stronger US dollar, rising Treasury yields, and the Federal Reserve's potential for more rate hikes. The odds of a 25-basis-point rate hike in September have increased to around 67%, according to Reuters.
Another factor contributing to the price drop is the rise in crude oil prices, which has added pressure on gold and silver. Brent broke past $95 a barrel on September 2, while WTI moved above $91.