Gold Futures Drop Below $4,500 as Rate Hike Worries Intensify

Gold futures fell below the $4,500 threshold on May 27, 2026, as mounting expectations of a Federal Reserve interest rate hike drove investors away from the non-yielding asset. The most-active August contract settled at $4,492.30 an ounce on the Comex, down 2.1%, marking its lowest level since mid-May. Traders now assign a 70% probability to a quarter-point rate increase at the Fed’s June 14-15 policy meeting, CME FedWatch data showed. Higher rates tend to bolster the dollar and Treasury yields, reducing gold’s appeal. The U.S. dollar index rose 0.4% to 105.6, a two-week high. The decline extends gold’s monthly loss to 4.3%, wiping out year-to-date gains. Some strategists remain bullish, however, viewing the pullback as a buying opportunity amid geopolitical uncertainties.