Gold Prices Tumble as Interest Rate Hike Fears Mount

Global gold prices are under pressure as investors become increasingly cautious about interest rates. Despite declining oil prices, the prospect of continued interest rate hikes is weighing on gold's attractiveness.

On September 22, world gold prices fell by 1% to $4,300.32 per ounce in spot trading, while gold futures contracts decreased by 1.08% to $4,336.67 per ounce.

The decline comes as the US Federal Reserve (Fed) officials' statements are being closely watched for signals on whether interest rates will continue to rise in October or not. The Fed increased interest rates by another 0.25 percentage points last week and signaled further rate hikes in coming months.

High interest rates often put pressure on gold, as the precious metal does not generate income from interest, making investors prefer yield-generating assets.