Rising oil prices strengthen interest rate hike expectations, while precious metal prices decline

On Monday, precious metal prices continued to decline, with spot gold dropping nearly 3% during the day and spot silver plunging 5%. Rising oil prices have intensified inflation concerns, reinforcing market expectations for further interest rate hikes by the Federal Reserve.

Tim Waterer, Chief Market Analyst at KCM Trade, stated that the combination of high bond yields and high oil prices puts pressure on gold. Investors will focus on U.S. employment and inflation data, including job vacancies, the ADP employment report, the PCE inflation report, and the non-farm payroll report.