Gold Tumbles Below $4200 Amid Hawkish Fed Signals and Geopolitical Unrest
Gold prices have weakened below $4,200, reaching their lowest level since August 5. The decline comes as investors shift away from the commodity due to rising US bond yields and a strengthening US Dollar.
The hawkish signals from the Federal Reserve earlier this month have contributed to higher interest rates in the US, making the dollar more attractive to international investors. Additionally, geopolitical tensions in the Middle East have lent support to crude oil prices, which in turn has undermined gold's value.
US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and resume nuclear talks in return for lifting the naval blockade of Iranian ports. Trump also stated that additional military strikes on Iran were possible before the midterm elections in the US.