Gold falls over 2% as rate-hike bets strengthen

Gold prices fell more than 2% on Monday, dropping to their lowest level since early August, as rising oil prices fueled inflation worries and strengthened expectations of further US Federal Reserve interest-rate hikes. Spot gold was down 2.7% at $4,171.85 per ounce as of 0627 GMT, with US gold futures also falling 2.7% to $4,204.30. Analysts cited high bond yields and oil prices as key pressures, while traders priced in a 69% chance of a US rate hike in October. The Fed raised rates earlier this month to a range of 3.75% to 4%. Investors are watching upcoming US labor market and inflation data this week. Other precious metals also declined, with silver falling 4.3% and platinum down 2.8%.