Gold Prices Plummet Below $4,300 Amid Fed Rate Hike Expectations

Global gold prices have dipped below $4,300 per ounce for the third consecutive week. This decline comes as investors await the Federal Reserve's policy meeting on September 15 and 16.

The primary driver of this drop is the increasing expectation that the Fed will raise interest rates by 25 basis points. Market data indicates a more than 90% probability of this hike, which would make gold less attractive to investors as other assets offering better returns become more appealing.

A stronger U.S. dollar and rising crude oil prices are also contributing factors. The dollar's strength makes gold more expensive for buyers using other currencies, while higher oil prices fuel concerns about inflation, keeping interest rates higher for longer and creating a tough environment for non-yielding assets like gold.