Gold Falls Amid Soaring Rate Hike Odds

Global gold prices dipped on Monday as stronger-than-expected US inflation data fueled expectations of a Federal Reserve rate hike. Spot gold traded near USD 4,340 an ounce, down nearly 0.2 percent during the session.

The precious metal has lost about 1.8% over the past week amid growing concerns over interest rates. Silver also came under pressure, falling nearly 0.8% to around $64 an ounce.

The inflation data released on Friday showed core consumer prices increased 0.3% from the previous month, strengthening expectations of tighter monetary policy. Traders are pricing in nearly an 88% probability of a Federal Reserve rate hike in September, which would be its first increase in three years.