Gold Prices Tumble on Rate Hike Expectations

Gold prices have dipped to near $4,400 per ounce due to renewed expectations of a Federal Reserve rate hike in September. The stronger-than-expected U.S. non-farm payroll data has pushed the probability of a rate hike above 60%, putting downward pressure on gold prices.

Hawkish remarks from Federal Reserve officials and robust economic data have created short-term bearish factors, but analysts believe these will not disrupt the long-term bullish thesis for gold prices.

Market dynamics suggest that the decline in gold prices is largely driven by profit-taking after a significant rally in August. Gold ETFs saw a maximum gain of approximately 15% in August, closing the month up 11%.