Gold Falls Amid Growing Bets for US Rate Hike This Week

Gold prices dipped on Monday as expectations of a U.S. Federal Reserve interest rate hike this week grew stronger following hot inflation data and rising oil prices.

The spot price of gold fell 1.3% to $4,292.13 per ounce by 1050 GMT, marking its third straight weekly decline.

U.S. consumer prices accelerated in August, with a key measure of underlying inflation posting its largest increase in four months, data showed on Friday, reinforcing U.S. rate hike expectations.

Markets are now fully pricing in a Fed rate hike following last week's CPI data, said UBS analyst Giovanni Staunovo.