Gold Slides Below $4,500 as Fed Rate Hike Bets Rise and Oil Surges

TLDR

• Gold fell 1.6% to around $4,377 as oil prices and bond yields jumped sharply
• Fed Chair Kevin Warsh’s hawkish Jackson Hole speech pushed rate hike bets to 66% for September
• Brent crude crossed $91 a barrel after renewed U.S.-Iran tensions raised supply concerns
• The 10-year Treasury yield hit 4.78%, its highest since early 2025
• Gold is still up nearly 10% for August, supported by Treasury debt purchases and central bank buying

Gold dropped sharply on Tuesday, falling 1.6% to around $4,377 an ounce. The move came as oil prices surged and a global bond selloff pushed yields higher, raising the chances of another Federal Reserve rate hike.

Gold futures also fell 1.2% to $4,426. Silver dropped 2.4% to $64.98 an ounce, and platinum declined 1.2%.

The latest drop puts gold around $320 below last week’s high near $4,697.

Rate Hike Fears Drive the Selloff

Federal Reserve Chair Kevin Warsh spoke at Jackson Hole on Friday. He signaled a firm commitment to getting inflation back to the Fed’s 2% target.

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