Gold Slips on Hotter Inflation Expectations and Soaring Oil Prices

Gold prices have been slipping as investors react to hotter-than-expected US inflation data. The latest figures show that the core consumer price index rose 0.3% month on month, excluding food and energy costs. This increase has boosted expectations that the Federal Reserve will raise interest rates later this week.

The Fed meeting is now pricing roughly an 88% probability of a September rate increase, which could weigh on gold as higher borrowing costs make yield-producing assets more attractive.

Additionally, surging oil prices are adding to inflation risks. Brent crude has climbed toward $107 a barrel after rising almost 9% last week due to the ongoing Middle East conflict.