US Interest Rate Hike Expectations Slam Gold Prices to Six-Week Low

Gold prices fell to their lowest level in six weeks on Monday, hitting $4,280.60 due to a stronger US dollar and rising US Treasury yields ahead of the Federal Reserve's policy meeting.

The US Dollar Index rose 0.5% to a two-week high of 99.59 points, making dollar-denominated gold bullion less attractive to buyers holding other currencies.

Rising US interest rate expectations also contributed to gold's decline, with markets pricing in an 86% probability of a 25-basis-point rate hike this week.