Commodities
Gold Prices Plummet as Oil Surge Fuels Rate Hike Expectations
Gold prices dropped over 1% on Thursday as rising oil costs and US inflation data increased expectations of a Federal Reserve interest rate hike next week.
The spot gold price fell 1.2% to $4,349.32 per ounce around 8 pm IST, while US gold futures declined 1.6% to $4,391.30, according to Reuters.
US producer prices rose in line with expectations in August, reflecting a rebound in energy costs, and traders subsequently priced in a 70% probability of a Fed rate hike next week, up from 62% before the data, according to the CME FedWatch Tool.