Gold drops more than 1% amid expectations of US interest rate hike

Gold prices fell by more than 1% on Monday as oil prices rose, exacerbating inflation concerns and bolstering expectations that the US Federal Reserve will raise interest rates again.

By 01:17 GMT, spot gold fell 1.5% to $4,223.95 per ounce, while US gold futures declined 1.5% to $4,257.90 per ounce.

Tim Waterer, chief market analyst at KCM Trade, said that rising bond yields, coupled with higher oil prices, remain a headwind for gold. He noted that oil prices rose amid mixed signals on oil flows, keeping inflation at the forefront of investors’ concerns.

Among other precious metals, spot silver fell 2.6% to $62.64 per ounce, platinum dropped 2.1% to $1,741.45, and palladium declined 2.1% to $1,239.95.