Gold prices fell during trading on Monday, September 14, as rising oil prices exacerbated concerns about inflation and boosted expectations that the Federal Reserve would raise interest rates at its monetary policy meeting this week.
In trading, gold futures fell by about 0.5% to $4,375 an ounce, while the spot price of the yellow metal also declined by 0.4% to $4,328.50 an ounce.
The yellow metal had recorded a decline for the third consecutive week on Friday.
According to the CME FedWatch tool, traders are 86% expecting a U.S. interest rate cut at this week's central bank monetary policy meeting, compared with 67% before last week's inflation data.
Data released on Friday revealed that the pace of rising consumer prices in the United States accelerated during August, while one of the key measures of core inflation recorded its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates this week.
Oil prices jumped more than 2% today after new strikes on Saudi Arabia and Iranian attacks on ships in the Gulf exacerbated supply concerns following the closure of a major Saudi oil pipeline.
Diplomatic efforts in the Middle East appear to be faltering after a meeting between Iran and other Gulf states was postponed.
Goldman Sachs said on Friday that it still sees upside risks to its forecast that gold will reach $4,900 an ounce by the end of 2026, although it expects price volatility to remain high.
