Gold Futures Tumble as Fed Signals Hawkish Stance

The gold futures market experienced a significant decline after hawkish remarks by U.S. Federal Reserve officials, dropping roughly 3% in New York. This move, driven by the Fed’s expectation of interest rate hikes, led to a decrease in both spot prices and physical demand for gold in Asia. Silver, palladium, and platinum also felt the impact, registering declines as well. The decline is attributed to reduced expectations for a December rate cut by investors anticipating further tightening from the Fed.