Gold Prices Slide as Higher-For-Longer Rate Environment Takes Hold

Gold prices have slipped as investors increasingly price in a higher-for-longer U.S. interest-rate environment, putting additional pressure on the market already down more than 22% from its January record.

Spot gold fell 0.3% to $4,332.34 an ounce, while U.S. gold futures dropped 0.3% to $4,370.40 as stronger rate-hike expectations and recent dollar strength outweighed some of bullion's traditional safe-haven appeal.

The key shift is coming from the Federal Reserve, where traders now see a 90% probability of another rate increase in December, up from 80% a week earlier, according to the CME FedWatch Tool.