Gold Prices Plummet Over 1% Amid Rising Oil Costs and Interest Rate Hopes

Gold prices plummeted over 1% on September 28 as rising oil prices fueled inflation concerns and strengthened expectations that the US Federal Reserve could raise interest rates again.

The spot price of gold fell to $4,223.95 per ounce, while US gold futures dropped to $4,257.90 per ounce.

The increase in oil prices has heightened concerns over persistent inflation, which is weighing on gold as it does not generate interest income and tends to lose appeal when interest rates and bond yields rise.

This comes after the Federal Reserve raised its benchmark interest rate by 25 basis points earlier this month, bringing its target range to 3.75%-4%.