Gold took a 2.7% dive on Thursday, dropping to $3,880.93 per ounce, the lowest since October 2025.
The main reasons? Rising oil prices and fading hopes for Middle East peace have fueled concerns about inflation.
Traders price 87% December Fed hike
US President Trump's recent comments dismissing an Iran peace deal have pushed oil prices even higher and stoked more inflation fears.
Now, traders are betting there's an 87% chance the Federal Reserve will hike interest rates in December, which makes gold less attractive to investors.
All these factors together have led to a big selloff in gold lately.