International gold prices fall over 1% as US inflation, oil prices lift rate-hike bets

Gold prices in international markets fell more than 1% on Thursday after stronger-than-expected inflation signals from the US and rising oil prices fuelled expectations of tighter monetary policy by the Federal Reserve. Spot gold fell 1.2% to $4,349.32 per ounce around 7 pm IST, while US gold futures declined 1.6% to $4,391.30. A stronger US dollar and higher 10-year US Treasury yields also weighed on the bullion.

Among other precious metals, spot silver fell 4.2% to $64.47 an ounce, platinum declined 4.9% to $1,802.48 and palladium dropped 4.3% to $1,295.23.

In domestic markets, however, gold prices rebounded after three sessions of losses, rising Rs 600 to Rs 1,58,600 per 10 gram in the national capital on Thursday on fresh buying by retailers and stockists. Silver extended its rally for a third consecutive session, climbing Rs 1,200 to Rs 2,44,600 per kg from the previous close.