Rate Hike Expectations Weigh on Gold and Silver Prices

The gold and silver prices continued to decline on Wednesday, with spot gold reaching its lowest price since August 7 at $4,290. Silver also dropped to $63.60 due to a stronger U.S. dollar and higher Treasury yields.

Oil prices rose for the third day as tensions between the U.S. and Iran escalated, which could keep inflation high and force the Fed to increase interest rates.

The markets now expect a 67% probability of a September rate hike, up from around 40% a week ago, with Fed Governor Michael Barr indicating that the Fed might have to hike rates if inflation does not slow down quickly.