Gold Prices Plummet Amid Rising Rate Hike Expectations

Gold prices declined on Thursday as expectations of further rate hikes from the US Federal Reserve weighed on the non-yielding metal. Spot gold fell 0.3% to $4,274.79 per ounce by 0702 GMT. US gold futures for December delivery also dropped 0.2% to $4,309.80.

Ross Maxwell, chief strategy officer at VT Markets, attributed the decline in gold prices to investors' focus on the Fed's higher-for-longer stance following last week's rate increase and fluctuations in the US dollar and Treasury yields.

Oil prices continued their upward trend after climbing 4% in the previous session due to diplomatic talks between the United States and Iran showing no concrete signs of progress. Mounting US inflation pressures and a strengthening economy are pushing the Fed towards a rate hike on the eve of critical national elections.