Gold prices fell 0.3% to $4,334.31/oz as oil rose and Fed rate hike fears grew
Gold dropped in early trading on Monday while oil climbed and investors worried the Federal Reserve would raise rates this week.
Gold prices declined during early Monday trading, with spot gold falling 0.3% to $4,334.31 per ounce by 03:30 GMT. The drop followed three consecutive weekly losses. U.S. gold futures also dropped 0.8% to $4,375 an ounce. Tim Worrall, head of market analysis at Keybridge Trade Bank, explained that energy price hikes and rising expectations for interest rate decisions from the Federal Reserve and the Bank of Japan are suppressing gold returns. He noted investors might still buy gold as a hedge against geopolitical uncertainty and ongoing central bank policy volatility despite these declines. The decline occurred as oil prices increased.
