Gold Prices Plunge as Fed Rate Hike Bets Rise

Gold prices fell by 0.4% to $4,428.54 an ounce on Tuesday, as expectations for another Federal Reserve rate hike rose.

The U.S. dollar's stable performance and persistent geopolitical risks have not been enough to counterbalance the impact of rising interest rates on gold.

Rising expectations for a Fed rate increase in September have climbed to 66%, and further tightening may be needed to address inflationary forces, according to Fed Chair Kevin Warsh.

Gold's short-term technical structure has deteriorated, with sellers repeatedly preventing the metal from staging a meaningful recovery. The spot price is pressing against the $4,420-$4,426 support band.