Gold Prices Plummet Amid Fed Interest Rate Hike Expectations

Gold prices plummeted by 3.18% in the last trading session of the week, closing at $4,454.4 per ounce.

The sharp drop occurred as the market adjusted its expectations about the US Federal Reserve's (Fed) monetary policy.

Fed Chairman Kevin Warsh emphasized the importance of bringing inflation to a stable level and warned that prolonged price pressure remains a significant risk to the economy.

As a result, the probability of the Fed raising interest rates in September increased to 57.5% from 35.9%, making it unfavorable for gold as investors tend to switch to more profitable assets when interest rates rise.