Gold and silver prices experienced notable declines amid growing expectations for Federal Reserve interest rate hikes. According to FX Street, gold (XAU/USD) fell to $4,375, marking a nearly 7% drop from last week's high near $4,700. Silver (XAG/USD) also slipped below $65.50 to around $64.85, down 2.54% on the day.
The US Dollar showed signs of recovery, while the New Zealand Dollar weakened against it. FX Street reported that the NZD fell 0.35%, dipping just below 0.5900 during the European session on Tuesday. Market sentiment is influenced by Fed funds futures, which price in a 67% probability of a 25 basis points rate hike on September 16 and a total tightening of 60 basis points over the next twelve months, according to Brown Brothers Harriman's Elias Haddad.
For Japanese investors, these movements highlight the importance of monitoring US monetary policy shifts as they impact precious metals and currency markets globally, including the yen’s relative performance in FX trading.