Gold Prices Tumble on Inflation Fears and Rate Hike Bets

Gold prices have dropped for a fourth consecutive day due to rising concerns about inflation and interest rate hikes. The US Federal Reserve's commitment to combatting high prices has pushed bond yields higher, making gold less attractive by comparison.

The attacks in the Middle East have further intensified these pressures, with oil prices climbing this week. This has fueled bets on at least two interest rate hikes by March next year, which could weigh heavily on bullion.

Frederik Fischer, senior portfolio manager for multi-asset and commodity funds at Allianz Global Investors, described the market reaction as 'reasonable', but noted that it leaves room for positive surprises.