Gold Prices Plummet Over 2% Amid Rising Oil and Inflation Concerns
Gold prices plummeted by over 2% on Monday amid rising oil prices and inflation concerns, prompting expectations of further interest rate hikes from the US Federal Reserve.
The spot price of gold fell to $4,198.10 per ounce at 03:57 GMT, while US gold futures declined by 2.1%, reaching $4,231 per ounce, according to Asharq Al-Awsat reports.
High bond yields and oil prices are weighing on the gold market, said Tim Waterer, chief market analyst for KCM Trade. Mixed signals regarding oil flows are keeping investors focused on inflation risk, he added.
The US Federal Reserve raised its target rate range by 0.25 percentage points to 3.75-4% earlier this month. The probability of another rate hike in October is now at 68%, as indicated by the CME FedWatch Tool.