Gold Prices Tumble as Oil Rally Fans Rate Hike Bets

Gold prices declined on Monday due to rising oil prices and increased expectations of interest rate hikes ahead of the Federal Reserve's policy meeting this week.

The spot price of gold fell by 0.3% to $4,334.31 per ounce, while US gold futures dropped 0.8% to $4,375.00.

Tim Waterer, chief market analyst at KCM Trade, said that rising energy prices and climbing rate expectations are creating a 'yield headwind' for gold.

However, Waterer also noted that dips in the price of gold should still find buyers as an uncertainty hedge while geopolitics and rate policy remain fluid.