Gold Tumbles Below $4,440 Amid Rising Rate Hike Odds and Strong Dollar

Gold prices fell below $4,440 on September 1, extending losses from August 28. This decline reflects growing investor caution as the Federal Reserve signals a potentially more aggressive stance on interest rates.

The primary catalyst behind gold's recent slide is Federal Reserve Chair Kevin Warsh's hawkish comments at the Jackson Hole symposium, which increased market expectations for a September rate hike to between 57% and 66%, up from around 36-40% just a week earlier.

This repricing of Fed policy tightened financial conditions, pushing US Treasury yields higher. The 10-year Treasury yield climbed above 4.75%, increasing the opportunity cost of holding gold, which pays no interest.