Gold Prices Plummet Amid Rising Rate Hike Expectations

Gold prices fell to their lowest in nearly two weeks on Monday, extending declines from Friday's session. The precious metal hit $44,423.84 per ounce, down 0.7% from the previous close. This marks a new low since August 19.

The drop comes after US Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be necessary to combat inflation at the Jackson Hole economic symposium last week. Markets now see a 57% chance of a Fed rate hike in September, up from 36% before Warsh's comments.

Gold typically loses appeal in a rising interest rate environment as it does not yield interest, making it less attractive to investors seeking returns.