Gold drops nearly 3% as oil surge revives Fed rate-hike bets

  • Spot gold and silver fell as oil prices increased and rate-hike expectations strengthened.
  • Spot gold declined nearly 3%, while spot silver dropped 5% during Monday trading.
  • Investors will monitor U.S. job openings, ADP, PCE and nonfarm payrolls data this week.

Spot gold fell nearly 3% on Monday while spot silver plunged 5%, pressured by rising oil prices, higher bond yields and renewed expectations that the Federal Reserve may raise interest rates further. KCM Trade Chief Market Analyst Tim Waterer said uncertainty over oil supplies had pushed prices higher and brought inflation back into focus for investors. Markets this week will assess U.S. job openings, the ADP employment report, the PCE inflation report and the nonfarm payrolls report. Waterer said stronger-than-expected inflation or employment data could lift bond yields further and put additional pressure on gold.

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