Gold prices drop amidst hawkish Fed and US debt talks.

Gold prices have dropped by 5.26% in just under two weeks, while the US dollar has gained roughly 2.42% for the same period. The decline in gold can be attributed to the recent comments from Federal Reserve officials, who have reinforced their commitment to keep interest rates elevated to reduce inflation. The Fed's primary tool to reduce inflation is to raise interest rates, which cause an economic contraction, and recent comments have confirmed their resolve to curb inflation.