Gold Slumps as Rate Hike Fears Rise Amid Middle East Tensions

Gold prices continued their downward trend on September 1, dropping to approximately $4,344 per ounce amid heightened geopolitical tensions in the Middle East and a global bond selloff.

The decline of 2.2% appears consistent with an environment of rising bond yields, as the 10-year U.S. Treasury yield approaches 4.78%.

Increased expectations for a rate hike by the Federal Reserve have led market participants to anticipate potential interest rate hikes in September, with Fed funds futures indicating a 44% to 62% chance of an increase.