Gold drops below $4,200 as oil shock and Fed rate bets hit bullion

Gold prices fell sharply Monday, dropping below $4,200 per ounce as rising oil prices, a firmer dollar, and higher U.S. Treasury yields fueled expectations the Federal Reserve may maintain tight monetary policy. Spot gold slid 2.1% to $4,198.10 per ounce, marking its steepest daily decline since September 1. Higher energy costs are being interpreted as a reason for the Fed to stay restrictive, with markets pricing a 68% chance of another rate hike in October. Analysts see $4,200 as a key short-term test, with potential support near $4,000 if weakness persists. Long-term demand remains firm, as global gold ETFs attracted $18 billion in August, the second-largest monthly inflow on record.