Gold Prices Drop Nearly 2% Amid Oil Surge and Near-5% Yields Boosting Rate Hike Bets

Gold and silver prices fell sharply Monday as rising bond yields and surging energy costs strengthened expectations for a Federal Reserve rate hike. Spot gold traded at 4269.90 dollars an ounce, down 1.8 percent, while silver declined 2.5 percent to 62.75 dollars. August CPI rose 0.4 percent with core at 0.3 percent, pushing markets to price an 87 percent chance of a 25 basis point increase this week.