Muscat: Gold prices edged lower today, as soaring oil prices intensified concerns over inflation and reinforced expectations that the US Federal Reserve may raise interest rates at its monetary policy meeting this week. Spot gold fell 0.5 percent to $4,327.80 per ounce, having logged its third consecutive weekly decline on Friday. US gold futures for December delivery dropped by about one percent to $4,368.60.

According to Oman News Agency, traders are now pricing in an approximately 86 percent probability of a US rate hike at the central bank's monetary policy meeting on 15 and 16 September, compared with roughly 67 percent before last week's inflation data. Data released on Friday showed US consumer prices accelerated in August, while a key measure of core inflation posted its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates this week.

Goldman Sachs commented on Friday that it continues to see upside risks to its forecast of gold reaching $4,900 per ounce by the end of 2026, although it expects price volatility to remain elevated. Among other precious metals, spot silver fell 1.1 percent to $63.75 per ounce today, platinum declined 0.8 percent to $1,782.50, and palladium dropped 0.7 percent to $1,290.36.