Gold, copper prices hit 1-mth low amid renewed inflation fears

investing.com:

Investing.com-- Gold and copper prices fell to their weakest levels in a month on Monday, coming under pressure from a stronger dollar as rising U.S. inflation pushed up concerns over higher interest rates. 

Data from last week showed that U.S. inflation edged higher in July after declining steadily this year, pushing up concerns that the Federal Reserve will be forced into raising interest rates further to curb price pressures.

This notion pushed up the dollar, with the greenback hitting an over one-month high against a basket of currencies on Monday. Strength in the dollar weighed on most commodities priced in greenback.

Spot gold fell 0.1% to $1,911.69 an ounce, while gold futures expiring in December fell 0.2% to $1,943.55 an ounce by 20:23 ET (00:23 GMT). Both instruments were at their weakest levels since early-July.

Data released on Friday showed that U.S. producer price index (PPI) inflation grew more than expected in July. The reading came just a day after data showed consumer price index inflation also grew in July.

The readings showed that inflation was once again trending higher after easing substantially earlier this year, and drove concerns that the Fed will have to raise rates further.

This notion boosted the dollar, with the prospect of higher rates also pointing to more pressure on non-yielding assets such as metals. Rising interest rates increase the opportunity cost of investing in non-yielding assets, with gold having logged steep losses in the past year as U.S. interest rates grew.

The yellow metal is also set for little relief this  year, with U.S. rates set to remain at 22-year highs for at least the remainder of 2023.

Among industrial metals, copper prices fell to an over one-month low on Monday,