Gold drops below $4,100 as Fed rate hike odds hit 90% in December

Gold fell more than 1% during Asian trading on Thursday, dropping below $4,100 per ounce as renewed Middle East energy supply threats reinforced expectations that US interest rates will stay high. Spot gold declined 1.1% to $4,094.90, its lowest level since October 14, while silver plunged 2.6%. Traders see about a 90% chance of a Federal Reserve rate hike in December, despite only a 16% probability of a move at next week's meeting. Rising oil prices from Houthi-linked attacks on Saudi infrastructure could push inflation higher, keeping Treasury yields elevated and increasing the opportunity cost of holding non-yielding gold. Analysts identify $4,073 as the next support level, with a sustained break potentially targeting $4,000. However, gold ETFs attracted $10 billion in September, reaching a record $31 billion quarterly inflow, suggesting some investors remain bullish despite recent price declines.