Commodities
Gold Prices Plummet Below Key Support as Fed Hike Odds Surge
Gold prices plummeted to around $4,307 after breaking below its rising trendline and the support zone of $4,336-$4,376.
The market has turned more bearish due to the rise in U.S. producer prices by 0.4% in August, pushing annual PPI to 5.4%, and increasing the probability of a September Fed hike to about 71%. The 10-year Treasury yield is approaching 5%, with the U.S. CPI due for release at 12:30 GMT today being the key focus.
Gold's price movement is expected to react to the stronger dollar and rising PPI, making it more challenging for investors to hold non-yielding bullion.