Gold drops below $4,100 as Fed rate hike bets pressure precious metals

Gold fell over 1% in Asian trading Thursday, dropping below $4,100 per ounce, as Middle East energy supply threats reinforced expectations that US interest rates will stay elevated. Spot gold declined 1.1% to $4,094.90, its weakest level since October 14. Traders assign only a 16% probability of a rate hike at next week's Federal Reserve meeting but see about 90% odds of one in December, leaving gold exposed to restrictive policy. Silver plunged 2.6%, with platinum and palladium also falling, as higher Treasury yields raise the opportunity cost of holding non-yielding metals. Gold now eyes support at $4,073, with a sustained break potentially targeting $4,000. However, World Gold Council data shows physical gold ETFs attracted $10 billion in September, suggesting resilient long-term investment demand despite recent price weakness.