Global Gold Prices Fall Amid US Inflation Data and Fed Rate Hike Odds

Gold prices fell globally on Monday after the US reported higher-than-expected inflation data, increasing the likelihood that the Federal Reserve will raise interest rates later this week.

The MCX gold futures expiring October stood at Rs 1,52,655, while silver futures for September delivery were at Rs 2,34,886 per kg. Spot gold was near $4,340 an ounce, down 0.2% on the day and 1.8% for the week.

The core consumer price index, which excludes food and energy costs, surged 0.3% from a month earlier, contributing to inflation concerns that fueled expectations of a Fed rate hike. Traders are pricing in nearly 88% chance of a Fed rate hike in September, marking the institution's first rate hike in three years.