Gold Prices Plummet as US Inflation Boosts Rate Hike Odds

Global gold prices fell on Monday as stronger-than-expected US inflation boosted expectations of an interest rate hike by the Federal Reserve.

The Fed's policy meeting is scheduled for later this week, and traders are pricing in nearly an 88% probability of a rate increase.

This would be the first hike in three years, and higher interest rates generally weigh on non-yielding assets such as gold and silver.

Spot gold traded near USD 4,340 an ounce, down about 0.2% during the session, while silver fell nearly 0.8% to around $64 an ounce.