Gold Prices Plummet Amid Rising Interest Rate Expectations

Gold prices have taken a hit this month, with spot gold down 0.2% at $4,170.63 per ounce as of 0150 GMT on Wednesday. The decline is part of a broader trend that has seen gold lose over 6% in value so far this month.

The dollar's strength against other currencies is also contributing to the downward pressure on gold prices. Investors are awaiting the release of US inflation data at 1230 GMT, which could influence expectations for Federal Reserve policy and Treasury yields.

According to Tony Sage, CEO of Critical Metals, a softer reading in the PCE price index could support gold prices and potentially send them back up to the $4,200-4,300 range. Conversely, a hotter number could push yields and the dollar higher, putting renewed pressure on gold and testing its value at around $4,100.