Gold Price Falls as Oil Prices Surge Ahead of Fed Decision

The gold price continued its downward trend on Monday as investors reacted to rising crude prices and the upcoming Federal Reserve interest rate decision. The US bond yields remain at an elevated level, with the ten-year yield attempting to cross 5%.

The crude oil prices have been rising due to the ongoing crisis between the United States and Iran. The Brent global benchmark jumped to $108, up sharply from its July low of $70, while West Texas Intermediate (WTI) rose to $103 and is hovering near its highest level since May 20th.

The soaring oil prices have an impact on gold as they indicate that US inflation will remain at an elevated level. Data released last Friday showed that the headline and core inflation remained above the Fed's target of 2.0%, leading to a decision to hike interest rates in the coming meeting on Wednesday.