Gold Falls on Rising Oil Prices and Rate Hike Expectations

Gold prices declined on Monday due to rising oil prices and expectations of a US Federal Reserve rate hike. Spot gold fell 0.5% to $4,327.09 per ounce after posting its third consecutive weekly decline on Friday.

Data released last week showed that US consumer prices accelerated in August, with underlying inflation posting its largest increase in four months.

This has boosted expectations of a rate hike at the Fed's policy meeting on Tuesday and Wednesday, with traders pricing in an 87% chance, up from about 67% prior to the inflation data. The Bank of Japan is also expected to raise rates on Friday.

Tim Waterer, chief market analyst at KCM Trade, said that gold isn't finding conditions to its liking due to rising energy prices and climbing rate expectations.