Gold Sinks on Hawkish Fed Stance and Interest Rate Fears

Gold prices have fallen to their lowest point in nearly two weeks following a hawkish statement from US Federal Reserve (Fed) chair Kevin Warsh. The decline comes as markets see a 60% chance of a Fed rate hike this month.

The spot price of gold fell by 0.8% to $4,417.04 per ounce at around 0406 GMT yesterday. This is its weakest level since August 19.

US gold futures also dropped by 1.4% to $4,466.80. KCM Trade chief market analyst Tim Waterer said that gold's appeal is reduced in a rising interest rate environment as it does not yield interest.