Fed Rate Hike Bets Sink Gold Prices

Gold prices fell on Monday due to rising expectations of a US Federal Reserve interest rate hike this week, following hot inflation data and rallying oil prices.

The spot gold price dropped by 1.2 percent to $4,296.68 per ounce by 1216 GMT, with US gold futures down 1.7 percent at $4,335.40.

Analyst Giovanni Staunovo from UBS attributed the decline in gold prices to markets fully pricing in a Fed rate hike after last week's CPI data and the renewed rise in oil prices, which could reinforce inflation concerns and keep the Fed on a hawkish footing.