Gold Price Plunges on Rising Rate Hike Fears

Gold prices are under pressure as Fed rate hike expectations rise, causing uncertainty in the market. Despite this, gold remains above $4,000, maintaining its long-term bullish outlook. The metal is currently trading near $4,370 after a sharp reversal from its August high of $4,697.

The short-term outlook for gold is cautious below $4,500, with the key support level at $4,300 determining the next move. Renewed U.S.-Iran tensions are supporting safe-haven demand, while higher energy prices have increased inflation fears and Fed rate hike expectations.