Gold Prices Hit Seven-Week Low as Fed Hike Odds Rise to 72.5%

Gold prices have hit a seven-week low as investors increasingly bet that the Federal Reserve will raise interest rates again in October.

The probability of another Fed increase has risen to around 72.5%, up from 57.6% a week earlier, coinciding with the US 10-year Treasury yield climbing to 5.27%. This has raised the opportunity cost for gold, a non-yielding asset, as the dollar strengthens.

Gold is currently trading at $4,130.58 an ounce, with analysts citing $4,100 as a potentially important support zone. A break below this level could put $4,000 back into view.