Gold Prices Plunge as Rate Hike Odds Surge

Gold prices have fallen to a two-week low of $4,375 as rate hike odds surge. The metal has cut through support and is now down 7% from last week's peak near $4,700 in just four sessions.

The cause of this decline is attributed to a single repricing - the Federal Reserve's probability of raising interest rates at its September 15-16 meeting has increased from 39.6% to 66.4%. This shift in expectations has led to a hike in Fed funds futures, implying 67% odds of a move on September 16 and 60 basis points of tightening over the next twelve months.

Silver is taking it harder than gold, with prices down 2.69% from Monday's $66.55 and now down 8.90% year to date.