Gold Prices Plummet Amid Market Uncertainty Over US Interest Rates

Gold prices closed last week at $4,285 per ounce after experiencing significant volatility due to market uncertainty surrounding US Federal Reserve interest-rate policy and inflation data expectations. The precious metal fell to around $4,244 per ounce during the week before recovering some of its losses.

The decline in gold prices was attributed partly to the Fed's recent decision to raise interest rates by 25 basis points to a range of 3.75-4 percent, alongside signals from several Fed officials that another rate hike this year remains possible.

Rising US Treasury yields and a stronger US dollar have also kept markets focused on the future direction of interest rates, weighing on gold as a non-yielding asset.