Gold prices expected to fall more than 2% this week as rate hike expectations and rising oil prices put pressure

Analyst Giulia Petroni pointed out that, dragged down by soaring oil prices, rising bond yields, and heightened expectations of interest rate hikes, gold prices are expected to fall more than 2% this week. In mid-European trading hours, New York gold futures prices once fell 0.5% to $4,383.90 per ounce. U.S. producer prices rose in August, further intensifying market concerns that the Middle East situation will lead to surging energy costs and further pass-through to inflation. The market is currently paying close attention to the Consumer Price Index (CPI) data scheduled to be released later on Friday. According to CME's "FedWatch" tool, traders now expect a 67% probability of the Federal Reserve raising interest rates next week.