Gold just tumbled below $1,300.
Prices for the shiny metal are down by 1.2% to $1,297.15 an ounce as of 8:45 a.m. ET — the weakest level since June 24, or the day after the Brexit vote when global markets were in chaos.
Gold is considered a traditional risk-off, “end of the world” trade and is often bought up aggressively by investors in times of stress.
Relatedly, markets are seeing the likelihood of a November rate hike at 21.4%, and around 61.2% for a hike by the end of the year.
Moreover, the US dollar is up by 0.5% at 96.19 following comments by Cleveland Fed president Loretta Mester, who said that, “We have to be a little pre-emptive in making sure that we’re moving the interest rate up so that we can keep the expansion sustained.”