US Inflation Fears Send Gold Prices Plummeting Amid Fed Rate Hike Odds

Gold prices dropped on Monday after the US released higher-than-expected inflation data, increasing the likelihood of a Federal Reserve rate hike later in the week.

The Fed's decision to raise interest rates could negatively impact gold and other precious metals. As of now, traders are pricing in nearly 88% chance of a Fed rate hike in September, marking the institution's first rate hike in three years.

The MCX gold futures expiring October stood at Rs 1,52,655, while the MCX silver futures for September delivery stood at Rs 2,34,886 per kg. Spot gold was near $4,340 an ounce, falling nearly 0.2% on the day and off 1.8% for the week.