Gold Prices Under Pressure as Fed Rate Hike Fears and Rising Bond Yields Weigh

The price of gold and silver has fallen due to fears of an interest rate hike by the US Federal Reserve. The Fed's Chairman, Kevin Warsh, hinted at tightening monetary policy, which led to a rise in bond yields, causing gold and silver prices to drop.

Sales were noted in gold and silver ETFs at the end of August and for two days in September, with a sharp decline in silver ETFs during trading. The experts from the commodities sector believe that the suggestion of an interest rate increase from the Fed led to an increase in bond yields, which dimmed the shine from gold and silver and caused a fall of up to four percent in ETFs.

The ongoing conflict between the US and Iran has driven up energy prices and increased demand for the US dollar, raising the risk of inflation. This could lead to further interest rate hikes, according to Hariselvan, founder and CEO of HAT Wealth.