Gold prices declined significantly, with the GLD ETF moving down -1.76%, as a surge in crude oil prices fueled concerns about persistent inflation. This has led to increased market expectations that the U.S. Federal Reserve will implement an interest rate hike at its upcoming policy meeting. The probability of a rate hike is now priced at over 85%, which makes non-yielding gold a less attractive investment compared to interest-bearing assets.
Gold Prices Fall on Inflation Fears and Fed Rate Hike Expectations