Gold Prices Plummet on Inflation Concerns and Interest Rate Hikes

Gold prices plummeted on Monday as concerns over inflation and interest rates took center stage. According to Reuters, spot gold dropped 1.5% to $4,223.95 per ounce by 01:17 GMT, while US gold futures fell 1.5% to $4,257.90 per ounce.

The decline in gold prices was fueled by rising oil prices, which bolstered expectations of another interest rate hike by the Federal Reserve. This move would likely increase borrowing costs and have a ripple effect on the economy.

Other precious metals also felt the heat, with spot silver declining 2.6% to $62.64 per ounce, platinum falling 2.1% to $1,741.45, and palladium dropping 2.1% to $1,239.95.