Commodities
Gold Prices Plummet as Oil Fears Fuel Rate Hike Bets
Gold prices plummeted to their lowest in over seven weeks on Monday, losing more than 3% of its value as inflation fears fueled by higher oil prices boosted bets for a Fed rate hike.
The precious metal fell to $4,155.67 per ounce, marking its lowest point since August 5, while US gold futures for December delivery dropped 3.1% to $4,188.10.
An increase in the probability of further US rate hikes is being priced in by market participants, according to UBS analyst Giovanni Staunovo, who attributed gold's recent weakness to this factor.
The dollar held firm, making greenback-priced bullion more expensive for holders of other currencies, while US Treasury yields extended gains.