Gold Prices Plummet Amid Rising Oil Prices and Inflation Concerns

Gold prices took a hit on Monday, plummeting more than 2% as rising oil prices and inflation concerns reinforced expectations of further Federal Reserve interest-rate hikes.

The spot gold price fell to $4,171.85 per ounce, its lowest since early August, while US gold futures dropped 2.7% to $4,204.30.

According to Tim Waterer, chief market analyst at KCM Trade, the high bond yields and oil prices are continuing to act as a thorn in gold's side, keeping inflation front and centre for investors.

The Fed raised rates earlier this month, lifting its target rate range by a quarter percentage point to between 3.75% and 4%, with traders pricing in a 69% chance of a US rate hike in October, according to CME's FedWatch Tool.