Oil prices rise, reinforcing Fed rate hike expectations, precious metals sell-off intensifies

Odaily News: Precious metal prices continued to fall on Monday, with spot gold dropping nearly 3% intraday and spot silver plunging 5%, as rising oil prices exacerbated inflation concerns and strengthened market expectations for further Federal Reserve rate hikes. Tim Waterer, Chief Market Analyst at KCM Trade, said: "The combination of high bond yields and high oil prices continues to put pressure on gold. Due to uncertainty in the oil supply outlook, oil prices have risen, bringing inflation back into investors' focus."

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