14.09.202612:26:11UTC+00Gold Falls as Fed Hike Bets Strengthen

Gold fell below $4,300 an ounce on Monday, hitting its lowest level in more than a month and deepening losses after a third straight weekly decline, as a stronger US dollar and rising expectations of a Federal Reserve rate hike pressured the precious metal. Markets are now pricing in roughly a 90% chance of a rate increase on Wednesday, after data showed US consumer inflation accelerated in August. A key gauge of underlying inflation rose at its fastest pace in four months, coming in slightly above expectations. At the same time, oil prices extended their rally after Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a vital route that bypasses the Strait of Hormuz and heightening global supply concerns. Elsewhere, the Bank of Japan is also expected to raise interest rates on Friday, as elevated energy prices and persistent tensions in the Middle East continue to complicate the inflation outlook.