Oil Price Surge Sparks Gold Sell-Off Amid Inflation Fears
Gold prices dropped to their lowest point in over a month on Monday due to rising oil prices, which are fueling inflation concerns and expectations of an interest rate hike by the U.S. Federal Reserve.
The spot price of gold fell by 1.8%, reaching $4,271.59 per ounce, while U.S. gold futures decreased by 2.2% to $4,311.20.
Market analyst Jim Wyckoff from the American Gold Exchange attributed the decline in gold prices to rising crude oil prices, which are driving inflation expectations and influencing major central banks to consider tightening monetary policies.
Economists surveyed by Reuters are increasingly optimistic about a rate hike from the Federal Reserve, with nearly an 89% probability of an increase during their policy meeting this week.