Gold Prices Dip Amid Inflation Concerns and Rate Hike Expectations

Gold prices witnessed a slight decline, primarily driven by surging oil prices, raising inflation worries among traders. With an 86% probability of a US interest rate hike on the horizon, consumer prices saw a notable rise in August, further solidifying expectations of increased rates. Other precious metals also faced downturns on Monday. Gold prices fell due to fears of inflation linked to oil prices, with traders expecting an 86% chance of a US interest rate hike at the central bank's policy meeting on Sept. 15-16. Gold prices continued to decline following expectations of higher US interest rates, with the Fed widely expected to raise its benchmark rate by half a percentage point to a range of 3.75 to 4.00 percent. Gold prices remained relatively stable while markets awaited the Federal Reserve's decision, with investors closely monitoring the outcome to gauge its impact on gold prices.