Gold Prices Suffer as Inflation Fears Drive Rate Hike Expectations

Gold prices plummeted by more than one percent on September 28th in response to rising oil prices and heightened inflation concerns. This development has reinforced expectations that the Federal Reserve will raise interest rates once again.

The US central bank had already increased interest rates earlier this month to between 3.75 percent and four percent, which added to the pressure on gold prices.

Spot gold fell significantly to $4,223.95 per ounce, while US gold futures dropped by a similar margin to $4,257.90 per ounce.