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Gold Plunges to Lowest in Two Years Amid Fed Rate-Hike Bets

  • Bullion under pressure as US, Europe eye monetary tightening
  • Jewelry demand in China may decline as growth targets weaken
Updated on

Gold fell to the lowest since April 2020 amid expectations of more aggressive interest-rate hikes by the Federal Reserve despite a fresh round of mixed US data.

Applications for US unemployment insurance fell for a fifth straight week, suggesting demand for workers remains healthy despite an uncertain economic outlook. Retail sales unexpectedly rose in August, but the prior month’s number was revised sharply lower. Factory production rose slightly in August while total industrial production, including mining and utilities, fell.