The intraday price of gold dropped 2% on Sept. 28, contributing to a loss of more than $550 billion in combined market value for gold and silver within three hours. Spot gold fell below $4,200 per ounce for the first time since Aug. 5, extending a downward trend that has persisted throughout the week.

An impasse over the Strait of Hormuz has kept energy costs elevated, which maintains pressure on the Federal Reserve to raise interest rates to counter sticky inflation. These macroeconomic conditions typically create headwinds for bullion, which generally declines as expectations for higher interest rates increase.