Gold Prices Decline Amid Rising Oil and Rate Hike Expectations

Gold prices declined on Monday as oil surged due to inflation concerns, increasing expectations of a U.S. Federal Reserve interest rate hike at its policy meeting this week.

The spot gold price fell by 0.5% to $4,327.09 per ounce after posting a third consecutive weekly decline on Friday. U.S. gold futures dropped 0.9% to $4,367.50.

According to Tim Waterer, chief market analyst at KCM Trade, 'Gold isn't finding conditions to its liking. Rising energy prices plus climbing rate expectations ahead of the Fed and BoJ meetings are delivering a clear yield headwind for gold.'

Data last week showed U.S. consumer prices accelerated in August, while a key measure of underlying inflation posted its largest increase in four months.