Gold futures fell 2% on Thursday lost the $1,800 mark

Inflation usually helps gold prices rise, but the prospect of an interest rate hike reduces the investment appeal of gold because it pushes up Treasury yields, thus reducing investor interest in assets such as gold that do not offer a fixed rate of return.

Gold futures for February delivery fell $35.90, or 2 percent, to close at $1,789.20 an ounce on the New York Mercantile Exchange. The futures price closed 0.6 percent higher on Wednesday. $Gold(BK2110.US)$ $Gold Concept(BK0309.SH)$