Gold Prices Plummet as Interest Rate Hike Expectations Soar

Gold prices plummeted in recent trading sessions, dropping to around $4,450.9 per ounce and losing 3.23% of its value in one session.

The sharp decline was largely driven by rising expectations of an interest rate hike from the US Federal Reserve (Fed) in September.

According to market analysts, the probability of an interest rate hike increased significantly after Fed Chairman Kevin Warsh emphasized the central bank's responsibility in bringing inflation back to its target.

The 2-year term US Treasury bond yield rose by around 9 basis points, while the USD strengthened against many major currencies.