Oil and gold prices fell on Thursday as investors upped their bets on the US Federal Reserve raising interest rates, which would limit inflation and ease demand for oil.

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Brent crude futures for September slipped 20 cents, or 0.2%, to $99.37 a barrel, after rising 8 cents the day before.

US West Texas Intermediate crude for August delivery was $95.93 a barrel, down 37 cents, or 0.4%, after increasing 46 cents the previous day.

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Gold futures were down 0.41% at $1,728.35. The dollar, which generally swings in the opposite direction of gold, surged on Thursday morning.

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Silver declined 0.67% among other precious metals. Platinum fell 0.26%, while palladium fell 0.25%. The benchmark 10-year Treasury yield in the United States increased, reducing demand for zero-yield gold.

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The US Federal Reserve is expected to increase interest rates by 100 basis points this month in response to a dismal inflation report that showed price pressures rising, reported Reuters.

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The Bank of Canada hiked its key interest rate by 100 basis points on Wednesday to combat inflation, surprising markets and becoming the first G7 country to do so in this economic cycle.

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According to Bloomberg News, citing a draught of the predictions, the European Commission anticipated record levels of inflation and cut its GDP projection for 2022 and 2023 as a result of the Ukraine war, squeezed demand owing to increasing costs and the risk of winter energy shortages.

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On Thursday, the US dollar maintained its steep gain, fueled by both expectations for speedier Federal Reserve policy tightening and safe-haven flows amid rising recession fears. In early trade on Thursday, the Indian rupee surged 7 paise to 79.74 against the US dollar, boosted by a solid trend in domestic markets.