Gold Prices Plummet Amid Rate Hikes and Bond Market Volatility

The price of gold has retreated to $4,257.18 an ounce, marking a daily loss of 0.6% and leaving it roughly 24% below its 52-week peak.

This decline comes as the Federal Reserve signals that additional rate hikes will be needed to control inflation, and bond markets are in turmoil due to rising sovereign debt yields.

Despite this, physical demand for gold remains strong, with China's imports surpassing 1,000 tonnes in the first eight months of the year, a record-breaking $158.8 billion haul.

India is also expected to experience its traditionally strong demand season, which could contribute to tighter global supply-demand balances and potentially push prices above $5,000 over the medium term, according to TD Securities.