Gold and silver prices retreat as markets price in potential Fed rate hikes, with gold falling 2% to $4,321.50 and silver sliding 2.7% to $63.40 amid a strengthening dollar.
Gold futures dropped 2% to $4,321.50 per ounce as a stronger dollar and rising interest rate expectations weigh on non-yielding assets. Investors are bracing for the Federal Reserve's upcoming policy meeting, with analysts warning that hawkish signals could trigger further declines for precious metals.
Precious metals are under pressure due to a strengthening U.S. dollar and growing expectations that the Federal Reserve will implement interest rate hikes to combat inflation.
The upcoming Federal Reserve policy meeting is the main event, as investors anticipate potential hawkish messaging that could further support bond yields and dampen demand for gold.