WASHINGTON (dpa-AFX) - Gold prices plunged on Monday as markets assessed the likely actions by global central banks to combat inflation. Inflationary concerns stoked by the spike in crude oil prices as well as the dollar's surge also dimmed the appeal of the yellow metal.
Both Federal Reserve and Bank of Japan are expected to raise interest rates in the current week. The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of interest rates rising to 3.75 - 4.00 percent in Wednesday's FOMC at 88.3 percent. It was 87.3 percent a day earlier and 59.4 percent a week earlier. The slump in gold prices, driven by expectations of an increase in interest rates is attributed to the opportunity loss of holding the yellow metal, which is typically non-interest bearing in nature.
Brent Oil Futures for November settlement are currently trading at $109.16, rising 4.4 percent from the previous close of $104.61. With the day's surge, Brent's price movement has resulted in weekly gains of more than 12 percent and monthly gains of more than 23 percent. Brent oil's gains over the past year exceed 62 percent while gains from the levels three years ago are around 16 percent.
With renewed inflation worries and Fed hike bets boosting the U.S. dollar, the Dollar Index has surged ahead. The Dollar Index which measures the strength of the dollar against a basket of six currencies has rallied 0.52 percent overnight to 99.63. It was at 99.12 at the previous close.
Gold Futures for December settlement are currently trading at $4,311.90, plunging 2.2 percent from the previous close of $4,408.90. While the day's trading ranged between $4,293.50 and $4,396.70, the 52-week trading ranged between $3,660.50 and $5,626.80. Gold Futures had touched an all-time high of $5,626.80 on January 29.
Amidst the recent losses, gold futures are saddled with weekly losses of 3.5 percent and monthly losses of 2.8 percent. On a year-to-date basis, the loss is 1.7 percent. The yellow metal's price gain over the 3-year horizon however stands at more than 125 percent.
Spot Gold is currently trading 1.8 percent lower on an overnight basis at $4,269.49 per troy ounce. While the day's trading ranged between $4,253.82 and $4,355.26, the 52-week trading ranged between $3,626.60 and $5,595.46. Spot Gold had touched an all-time high of $5,595.46 on January 29.
At current prices, Gold Futures and Spot Gold have both gained more than 17 percent over the past year.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
