Gold falls on growing Fed rate hike bets ahead of policy meeting

Oil prices rose about 3% on Monday, after new strikes on Saudi Arabian energy and civilian infrastructure and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline. O/R

Middle East diplomacy appeared to falter heading into Monday with the postponement of a meeting between Iran and other Gulf powers.

Among other metals, spot silver XAG= slid 1.9% to $63.22 per ounce, platinum XPT= dipped 1.4% to $1,770.82, and palladium XPD= also fell 1.4% to $1,280.97.

Gold prices slipped on Monday, as expectations of a U.S. Federal Reserve interest rate hike this week strengthened after recent hot inflation data and rallying oil prices.

Spot gold XAU= was down 0.9% at $4,308.24 per ounce by 0907 GMT, after posting a third straight weekly decline on Friday. U.S. gold futures GCcv1 dropped 1.4% to $4,348.50.

The dollar firmed at an over one-week high, making greenback-priced bullion more expensive for holders of other currencies.