Gold Tumbles as Dollar Strength and Fed Hawkishness Weigh
Gold prices dropped to near $4,330 an ounce on Wednesday due to a stronger US dollar and expectations of further Federal Reserve tightening. Spot gold was down about 0.6% in late Asian trade, extending a pullback that has erased much of last week's post-Fed rebound.
The Bloomberg Dollar Spot Index rose after three consecutive gains, making bullion more expensive for buyers outside the US. Despite this decline, it remains relatively contained given the increasingly hawkish rates backdrop. Record Chinese imports and sustained official-sector buying continue to provide support.
China imported over 1,000 tonnes of gold through August, exceeding its total purchases for all of 2025. Chinese investors have been buying bullion as a hedge against geopolitical uncertainty and limited domestic investment alternatives.