Gold Sinks on Rate Hike Bets Amid Fed Tightening Expectations

Gold prices have taken a hit this week, trading around $4,280 an ounce on Friday. This represents a decline of over 1% for the week, as rising US Treasury yields and growing expectations of further Federal Reserve rate hikes weighed on the metal.

The Fed's potential rate hikes are being priced in by markets, with a nearly 70% chance of a hike in October and a 95% probability of another increase in December according to the CME FedWatch Tool.

Meanwhile, oil prices have paused their two-day rally as US and Iranian negotiators explore a deal that could see Tehran reopen the Strait of Hormuz and Washington ease its economic blockade of Iran.