Gold Drops To $4,340/oz As Fed Rate Hike Odds Rise To 88%

Key Highlights:

• Gold slips on inflation data: Global gold prices fell after higher-than-expected US inflation data raised the likelihood of a Federal Reserve rate hike this week.
• MCX trading hours adjusted: Gold and silver futures will only trade in the evening session (5 pm-11:30 pm) on Monday due to Ganesh Chaturthi.
• Spot prices decline: Spot gold fell nearly 0.2% to around $4,340 an ounce, while silver dropped 0.8% to $64 an ounce.
• Core CPI drives rate-hike expectations: August's core consumer price index rose 0.3% month-on-month, fuelling inflation concerns.
• 88% odds of a Fed hike: Traders are pricing in a near-88% chance of a September rate hike — the Fed's first in three years.
• Middle East tensions add pressure: Houthi seizure of Yemeni ports, a shut Saudi pipeline, and a vessel strike in the Strait of Hormuz have raised supply-risk concerns, pushing crude above $107 a barrel.

New Delhi: Global gold prices slipped on Monday after the US higher-than-expected inflation data raised the likelihood that the Federal Reserve will raise interest rates later this week.

Gold and silver futures on MCX will only trade in the evening session from 5 pm till 11:30 pm on Monday, and will remain closed during the morning session on Ganesh Chaturthi.

MCX gold futures expiring October stood at Rs 1,52,655, while MCX silver futures for September delivery stood at Rs 2,34,886 per kg.