Gold price falls below $4,400 per ounce as the market increases bets on a Federal Reserve rate hike next week

Impacted by the acceleration of U.S. wholesale price inflation in August, gold prices have declined further, with New York gold futures currently falling below the $4,400 per ounce mark. Stephen Brown, Chief North American Economist at Capital Economics, stated: "In August, key PPI sub-indices that make up the core PCE deflator were quite robust, increasing the likelihood of a Federal Reserve rate hike next week." According to the FedWatch tool, the market is currently pricing in about a 70% probability of a Fed rate hike next week, up from 60% earlier on Thursday. During early U.S. trading hours, pressured by a stronger dollar and rising bond yields, gold prices fell 1.5% to $4,392.90 per ounce.