New Delhi — Global gold prices fell Monday after higher-than-expected U.S. inflation data increased expectations that the Federal Reserve could raise interest rates later this week.
Gold and silver futures on the Multi Commodity Exchange will trade only during the evening session from 5 p.m. to 11:30 p.m. Monday, with the morning session closed for Ganesh Chaturthi.
MCX gold futures expiring in October stood at Rs 1,52,655, while September silver futures were at Rs 2,34,886 per kilogram.
Spot gold was trading near $4,340 an ounce, down nearly 0.2 percent on the day and 1.8 percent for the week. Silver fell nearly 0.8 percent to $64 an ounce, while platinum and palladium also declined.
Underlying U.S. inflation increased in August, with the core consumer price index, which excludes food and energy costs, rising 0.3 percent from the previous month, according to data released Friday.
Gold finished Friday’s session higher but remained down 1.8 percent for the week.
Inflation concerns have also been fueled by a rally in crude oil prices amid fears of disruptions to shipping in the Red Sea. West Texas Intermediate crude climbed above $107 a barrel.
The rise in crude prices has increased expectations of a Federal Reserve rate hike, weighing on gold and silver.
Traders are pricing in nearly an 88 percent chance of a Fed rate hike in September, which would mark the central bank’s first rate increase in three years.
Houthi forces have seized key ports in Yemen along a coastline important to global seaborne oil trade.
Saudi Arabia has also temporarily shut its East-West pipeline following drone attacks, while a merchant vessel was struck in the Strait of Hormuz on Sunday. Iranian authorities said one person was killed and three others were injured. (Source: IANS)
