Gold Tumbles on Rising Oil Prices and Rate Hike Expectations

Gold prices plummeted over 1% on Monday as rising oil prices fueled inflation concerns and strengthened expectations of further Federal Reserve interest rate hikes.

The spot gold price fell to $4,223.95 per ounce, while US gold futures dropped to $4,257.90, both down 1.5% from the previous day.

Cleveland Fed President Beth Hammack expressed concern about persistently high inflation risking a normalization of prices in the American public's perception, which she believes the central bank cannot allow to happen.

Tim Waterer, chief market analyst at KCM Trade, attributed gold's decline to high bond yields and oil prices, saying 'The high bond yields and high oil price tandem continues to act as a thorn in gold's side.'