Gold falls to more than one-month low as oil rally, inflation data boost rate hike bets - cnbc.com

AI desk brief

Gold fell 1.8% to $4,271.59/oz, its lowest since Aug. 7, as a 4% rally in oil and stronger-than-expected U.S. CPI data pushed markets to price an 89% chance of a Fed rate hike this week. U.S. gold futures dropped 2.2% to $4,311.20, while the dollar hit a two-week high, adding pressure on bullion.

The macro setup is broadly bearish for non-yielding metals: higher energy costs are stoking inflation expectations, which reinforces hawkish central-bank bets, and the BOJ is also expected to raise rates on Friday amid Middle East tensions. Silver fell 2.5% to $62.88/oz, platinum slipped 2.0% to $1,759.87, and palladium eased 0.6% to $1,291.50.