Gold Market Responds to Hawkish Signals from the Fed

The gold market experienced a significant downturn on Wednesday, in response to hawkish signals issued by the Federal Reserve (Fed). Recent robust economic data released by S&P Global for September further intensified these expectations. According to CME Group data, 58.3% of the market's predictions now point towards two interest rate hikes before year-end, compared to 42.3% yesterday. The pressure on gold prices was exacerbated not only domestically but also by a strengthening dollar and rising long-term interest rates. Additional pressures came from fluctuations in oil prices, low demand in Treasury auctions, and announcements of repurchase operations by the US Treasury's secondary market. This scenario reflects a broader global trend toward higher interest rates, with potential implications for international investors seeking safe-haven assets amid current economic and political uncertainties.