Gold Prices Tumble Amid Rising Oil Prices and Rate Hike Expectations

Gold prices are under pressure due to rising oil prices and expectations of a Federal Reserve rate hike in October. The current price is around $4,197, with a 65% chance of a Fed rate hike, according to market analysts.

Rising oil prices are reviving concerns about inflation, which is keeping the spotlight on the Fed's rate hike cycle. This has led to higher Treasury yields and a stronger US dollar, negatively impacting gold prices.

Despite short-term challenges, strong structural demand from gold ETFs and central bank purchases may support prices in the long run. The next key support level for gold is $4,185, with a potential decline to $4,121 if this level is breached.