Gold Falls as US Inflation Raises Odds of Fed Rate Hike

Gold prices fell on Monday after US inflation data showed higher-than-expected levels, increasing the likelihood of a Federal Reserve interest rate hike.

The US core consumer price index, which excludes food and energy costs, surged 0.3% from last month, according to data released on Friday.

This heightened inflation concern led traders to price in nearly 88% chance of a Fed rate hike in September, its first in three years.