Gold Prices Plunge as Fed Rate Hike Fears Intensify - Yahoo Finance

AI desk brief

Spot gold fell 3% Thursday to $3,867.96/oz, its lowest since October 2025, while December futures lost 3.2% to $3,872 and silver declined 3.33% to $49.97/oz. The report attributed pressure to a dollar approaching a 19-month high and rising Fed tightening expectations; Reuters-cited CME FedWatch data put December’s 25-basis-point hike probability at 91%. Oil rose more than 1% as hopes for an Iran agreement weakened, potentially complicating inflation prospects. Friday’s U.S. producer-price report is the next cited catalyst: stronger inflation could reinforce tightening expectations, while softer data could ease pressure; nominal yields alone do not establish real-yield changes.