Commodities
Gold Price Drops Amid Elevated Inflation and Imminent Rate Hike Bets
The price of gold (XAU/USD) slipped below $4,350 on Monday as hotter-than-expected US inflation data raised the likelihood of a Federal Reserve interest rate hike this week.
The core US Consumer Price Index (CPI), which excludes food and energy costs, rose 0.3% MoM in August compared to 0.2% in July, exceeding market consensus of 0.2%
This has increased the pressure on the Fed to hike rates for the first time in three years, making yield-bearing assets relatively more attractive at gold's expense.