Gold is down by 2.01%

Gold held below $4,300 an ounce on Thursday after falling sharply in the previous session, pressured by a stronger dollar and surging Treasury yields. Those moves came as stronger-than-expected US private-sector data heightened inflation concerns and strengthened expectations for further Federal Reserve rate hikes. Several Fed officials have also reiterated support for last week’s rate increase while warning about persistent inflation risks. Markets are now pricing in around a 70% chance of another Fed rate hike in October, up from 55% a day earlier. At the same time, oil prices rebounded as Iranian President Masoud Pezeshkian maintained a firm stance, saying Tehran would not allow freedom of navigation through the Strait of Hormuz while sanctions and a US blockade remain in place. Higher oil prices add to inflationary pressures, reinforcing expectations for a more hawkish interest-rate outlook.

Gold decreased 2.01% to 4276.62 USD/t.oz

Gold extended its decline to around $4,280 an ounce on Wednesday, pressured by a stronger US dollar following stronger-than-expected PMI data and hawkish remarks from Federal Reserve officials that reinforced expectations of tighter monetary policy. The dollar climbed to fresh near two-month highs after data showed US business activity accelerated for a fourth consecutive month in September, reaching its fastest pace in more than five years. Richmond Fed President Tom Barkin said higher rates and the prospect of further increases could temper inflation expectations without significantly slowing economic activity. The Fed raised interest rates last week and signaled that another increase could come before year-end. Traders are currently pricing in a near 60% chance of a rate hike in October, according to the CME FedWatch Tool. On the geopolitical front, President Trump threatened further action against Iran while suggesting a deal could be reached soon amid renewed diplomatic efforts.