Fed Rate Hike Odds Skyrocket Gold Prices

Gold prices fell on Monday as stronger-than-expected US inflation data increased expectations that the Federal Reserve could raise interest rates later this week.

The Multi Commodity Exchange (MCX) reported that gold futures for October delivery stood at Rs 1,52,655 per kg, while September silver futures were at Rs 2,34,886 per kg. In the international market, spot gold was around $4,340 an ounce, down nearly 0.2 percent on the day and 1.8 percent over the week.

The rise in inflation strengthened expectations of a possible Fed rate hike, which would be the central bank's first rate increase in three years. Traders are now pricing in a nearly 88 percent probability of a Fed rate hike in September.