Gold Prices Plummet Amid Rate Hike Expectations and Stronger Dollar

Gold prices retreated on Monday as investors assessed the implications of the Federal Reserve's first rate hike since 2023 and the prospect of further policy tightening.

The precious metal fell by 0.7% to $4,345.76 an ounce by 06:58 ET (10:58 GMT), while gold futures dropped by 1.0% to $4,383.10 an ounce.

Analysts at ING attributed the decline in gold prices to investors' concerns about inflation remaining elevated and supporting expectations of higher interest rates for longer.

The U.S. dollar strengthened against a basket of global peers, ticking up by 0.1% to 100.30, which can dent gold's appeal by making it less attractive for overseas buyers.