Fed Rate Hike Bets Send Gold Plummeting to Two-Week Low

Gold prices have been struggling to stay above $4,400 as investors' expectations of a Federal Reserve interest rate hike dominate market sentiment.

The US Dollar and Treasury yields are supported by rising rate hike bets, making gold more expensive for overseas buyers and increasing the opportunity cost of holding the non-yielding metal.

Despite softer-than-expected US economic data, including a lower-than-forecast ISM Manufacturing Purchasing Managers Index (PMI), the market is reacting to interest rate expectations rather than inflation or geopolitical concerns.