Gold Prices Plummet as Inflation Data Boosts Rate Hike Bets

Gold and silver prices plummeted on Wednesday due to stronger-than-expected U.S. inflation data, which has reinforced expectations of a Federal Reserve rate hike next month.

The data from the U.S. personal consumption expenditures (PCE) price index for July pointed to persistent inflationary pressures, prompting traders to increase their bets on a rate increase at the Fed's September meeting.

Gold futures for December delivery fell 0.88 percent to settle at $4,653.30 per ounce, while silver futures for September delivery dropped 0.96 percent to close at $68.026 per ounce on the New York Mercantile Exchange.