Rising Oil Prices Reinforce Fed Rate Hike Expectations, Precious Metals Selloff Intensifies

Odaily News — Precious metals prices continued to decline on Monday, with spot gold falling nearly 3% intraday and spot silver plunging 5%, as rising oil prices exacerbated inflation concerns and reinforced market expectations for further Federal Reserve rate hikes. Tim Waterer, Chief Market Analyst at KCM Trade, said: "The combination of high bond yields and elevated oil prices continues to weigh on gold. With uncertainty surrounding the oil supply outlook, crude prices have risen, bringing inflation back into the spotlight for investors."

Investors this week will be watching a series of U.S. employment and inflation data, including job openings, the ADP employment report, the PCE inflation report, and the nonfarm payrolls report. Waterer said: "If inflation or employment data comes in stronger than expected, it could continue to push bond yields higher and further weigh on gold prices." (Jinshi)