Spot gold fell 0.5% to $4,327.09 an ounce after oil prices jumped more than 2%, stoking inflation concerns and boosting expectations that the Fed may raise interest rates at this week's meeting. U.S. gold futures dropped 0.9% to $4,367.50 an ounce after closing Friday with a third straight weekly decline. Investors now assign roughly 87% odds that the Fed will raise rates at its September 15-16 meeting, up from about 67% before last week's inflation data, according to the CME FedWatch Tool. The Bank of Japan is also expected to raise rates on Friday, amid higher energy prices and tensions in the Middle East. The more than 2% surge in oil prices followed a fresh Houthi attack on Saudi Arabia and an Iranian strike on a ship in the Persian Gulf, adding to supply concerns after a key Saudi oil pipeline was shut down. Among other precious metals, spot silver fell 1% to $63.80 an ounce, platinum slipped 0.2% to $1,792.59 and palladium dropped 0.4% to $1,293.86 an ounce.
