Gold Falls 1.17% as Fed Rate Hike Bets Surge on Hot PPI, Oil Spike

Gold futures dropped 1.17% to $4,364.50 as market bets on a Fed rate hike at the next meeting intensified, driven by a hot U.S. PPI reading and surging oil prices. The move reflects rising inflation expectations and a hawkish repricing of monetary policy, pressuring the non-yielding metal. The key uncertainty is whether the Fed will actually hike or maintain a pause, with the market now pricing in a higher probability of tightening.