Gold Prices Plummet Amidst Rising Yields and Stronger Dollar Index
Gold prices fell by over 2% last week, struggling to break through the $4,400 level amidst rising yields and a stronger dollar index. The price of gold closed at around $4,280 on Friday.
The US Federal Reserve's decision to raise interest rates for the first time in three years has contributed to the decline in gold prices. Traders are now pricing in a 66% chance of an October hike and a 93% chance of one in December, according to the CME FedWatch Tool.
Meanwhile, silver prices fell by around 3% last week, ending at $64 per ounce. The metal was also weighed down by rising US Treasury yields and growing expectations of further Federal Reserve rate hikes.
In contrast, crude oil extended its losing streak after Iran called on the US to return to an interim peace deal that failed to end the war over the summer.