India, Sept. 14 -- Gold prices plunged on Monday as markets assessed the likely actions by global central banks to combat inflation. Inflationary concerns stoked by the spike in crude oil prices as well as the dollar's surge also dimmed the appeal of the yellow metal.
Both Federal Reserve and Bank of Japan are expected to raise interest rates in the current week. The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of interest rates rising to 3.75 - 4.00 percent in Wednesday's FOMC at 88.3 percent. It was 87.3 percent a day earlier and 59.4 percent a week earlier. The slump in gold prices, driven by expectations of an increase in interest rates is attributed to the opportunity loss of holding the...