Gold slides as Fed rate hike bets rise

Gold prices fell sharply in early Monday trading, extending a recent losing streak, as concerns over further US interest rate hikes weighed on the precious metal. The standoff over the Strait of Hormuz and high oil prices are fueling inflation risks, prompting markets to expect another Fed rate increase in October. Higher bond yields raise the opportunity cost of holding gold, which pays no interest. Traders now see a 68 percent probability of a 25-basis-point hike by month's end, up from 18 percent a month ago. Key US jobs and inflation data this week could add further pressure.