Gold Tumbles Below $4,400 as Markets Reprice Fed Rate Hike

The price of Gold (XAU/USD) has extended its reversal below $4,400, resulting in a nearly 7% decline from last week's highs.

This downward trend is attributed to markets repricing a potential Fed rate hike in September, following hawkish comments by Federal Reserve Chairman Kevin Warsh at the Jackson Hole summit.

The US Dollar has 'recovered most of yesterday’s pullback,' according to strategists at Brown Brothers Harriman, who note that market expectations for further tightening remain firmly skewed toward a 25bps hike on September 16.

Technical analysis suggests that immediate support is seen at the mid-August lows between $4,310 and $4,330. Further down, the August 6 low, near $4,225, would come into view.