Gold prices fall as inflation fears and interest rate hikes loom

Gold prices dropped significantly this week, reaching their lowest point since July 2nd, despite geopolitical tensions. This decline is attributed to fears of rising inflation and potential interest rate hikes by the US Federal Reserve, making non-interest-bearing gold less attractive compared to bonds and bank deposits. The strengthening US dollar also contributed to the price drop, while China's central bank made its largest gold purchase in two and a half years, potentially offering long-term support.