Fed Rate Hike Bets Send Gold Plummeting to Near Two-Week Lows

Gold prices plummeted to near two-week lows on Monday as investors bet on an impending interest rate hike by the Federal Reserve. The Fed's hawkish stance, signaled by Chairman Kevin Warsh at the Jackson Hole symposium, has sent gold prices tumbling.

The metal fell 0.5% to $4,431.39 an ounce, its lowest level since mid-August. Despite this decline, gold remains on track for its strongest monthly performance since January, with a 9.6% gain so far.

Market strategist Daniel Pavilonis attributed the decline to higher interest rates and inflation expectations driven by energy prices and the drawdown of oil inventories. He also noted that strengthening US yields and the dollar's rise are putting gold in a precarious position.