Gold Slumps as Oil Prices Surge, Rate Hike Bets Soar

Gold prices declined on Monday, September 14, due to rising oil prices and increased expectations of interest rate hikes by the US Federal Reserve. Spot gold fell 0.6% to $4,321.26 per ounce, while US gold futures dropped 1.1% to $4,361.20.

Tim Waterer, chief market analyst at KCM Trade, stated that 'gold isn't finding conditions to its liking.' He attributed the decline in gold prices to rising energy costs and expectations of rate hikes ahead of the Fed's policy meeting this week.

The data showed US consumer prices accelerated in August, with a key measure of underlying inflation posting its largest increase in four months. As a result, traders are pricing in an 87% chance of a rate hike at the central bank's policy meeting on Tuesday and Wednesday, up from 67% prior to the inflation data last week.