Oil-Driven Inflation Fears Send Gold Prices Lower

Singapore - The price of gold fell on Tuesday as increasing oil prices fueled concerns about inflation and raised expectations that the US Federal Reserve will raise interest rates this week. According to data released by the CME's FedWatch tool, traders now expect a rate hike at approximately 86% compared to 67% before last week's inflation data.

The spot price of gold dropped 0.5% to $4,327.80 per ounce, while US gold futures for December delivery declined by about one percent to $4,368.60. This marks the third consecutive weekly decline in gold prices.