Gold Suffers Biggest Daily Drop in Weeks Amid Rising Oil Prices

Gold prices plummeted over 2% on Monday as a rise in oil prices fueled inflation concerns and reinforced expectations of further US Federal Reserve interest-rate hikes.

The spot gold price fell to $4,198.10 per ounce at 0357 GMT, marking its biggest daily decline since September 1.

Tim Waterer, chief market analyst at KCM Trade, attributed the decline to high bond yields and oil prices, which he said 'continues to act as a thorn in gold’s side'.

The Fed raised rates earlier this month, lifting its target rate range by a quarter percentage point to between 3.75% and 4%. Traders are pricing in a 68% chance of a US rate hike in October, according to CME's FedWatch Tool.