Strait of Hormuz Standoff Fuels Rate Hike Bets as Gold Plunges Nearly $100 in Asian Trading, Breaching $4,200 - finance.biggo.com

AI desk brief

Gold sold off sharply in Asian trading, briefly hitting $4,189.94 and breaching the $4,200/oz level, as persistently high oil prices and rising expectations of further Fed hikes hit bullion. The move extended a broader precious-metals slump, with silver down 2.6% to $62.64/oz, platinum off 2.1% to $1,741.45 and palladium down 2.1% to $1,239.95.

The article ties the pressure to the Strait of Hormuz standoff, with Brent crude up 70% YTD in 2026 and CME FedWatch implying about a 65% probability of another October rate hike. The US 10s/2s spread has narrowed to 17 bp, while upcoming PCE and payrolls data could further lift yields and keep bullion under pressure.