Commodities
Gold Prices Tumble as Inflation Data Boosts Rate Hike Bets
The recent US inflation data has sent gold prices plummeting as investors price in an 85-90% chance of a Federal Reserve rate hike at the upcoming meeting.
The Consumer Price Index (CPI) for August showed a 0.4% increase month over month and 3.4% year over year, which is consistent with pressure on gold prices.
Market participants have adjusted their expectations in response to the potential monetary policy shift, and the probability of gold reaching $15,000 by December has been negatively impacted.