Dollar Strength Sends Gold Prices Plummeting to $2,610

Gold prices weakened to $2,610 as a strong US Dollar reached its highest level since July 30. The rise in the USD Index (DXY) was fueled by hawkish comments from Federal Reserve officials, who signaled support for additional rate hikes.

St. Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee endorsed the prospect of further policy tightening to combat inflation risks.

Data from the CME Group's FedWatch Tool shows that traders assign a 90% probability to another rate increase in December, maintaining demand for the safe-haven Greenback.