Gold Price Falls as Oil Rally Fuels Inflation Concerns Ahead of Fed Meeting

Gold prices slipped on Monday as a surge in oil prices fueled inflation concerns and boosted expectations that the US Federal Reserve may raise interest rates at its upcoming policy meeting. The spot gold price declined by 0.3% to $4,334.31 per ounce at 0330 GMT after posting a third consecutive weekly decline on Friday.

The rise in oil prices is contributing to higher inflation expectations and has led market analysts to anticipate that the Fed will increase interest rates. This development is seen as a negative factor for gold, which typically performs well when interest rates are low. According to Tim Waterer, chief market analyst at KCM Trade, 'Gold isn't finding conditions to its liking.'