Spot gold falls 2.7% to $3,999.08 as markets price in higher odds of a September Fed rate increase.
Gold prices slid below $4,000 an ounce for the first time since November, pressured by rising expectations of Federal Reserve interest rate hikes. Spot gold dropped 2.7% to $3,999.08, while New York futures fell 0.2% to $3,999.70 in early European trading.
The decline follows last week’s Fed meeting, which sparked a repricing of rate expectations. Markets now assign a 69% chance of a September rate hike, up from 29% a week earlier. The dollar’s strength, at its highest in nearly a year, has weighed on bullion.
Silver, platinum, and palladium also retreated as the so-called debasement trade—gold’s outperformance amid inflation fears—lost momentum under the Fed’s hawkish shift.