Australian shares fell on Monday weighed down by the losses in energy and heavyweight financial stocks, after data showed elevated US inflation readings ahead of the Federal Reserve’s policy meeting later this week.

The S&P/ASX 200 index retreated 0.7% to 6,777.0 by 1228 GMT.

The benchmark ended 0.2% higher on Friday.

US personal consumption expenditures (PCE) price index, which the Fed tracks for monetary policy, gained 0.4% after increasing by the same margin in August, data showed on Friday.

Focus now turns to the Fed’s Oct. 31-Nov. 1 monetary policy meeting, where officials are expected to leave policy rates on hold. Markets participants are also monitoring the developments in the Middle East conflict to gauge its impact on the global economy.

Australia’s retail sales rose at a solid pace in September, beating forecasts, data showed, indicating that a rate hike could come as soon as next week.

In Sydney, interest rate sensitive financial stocks retreated 1.3%, with the “big four” banks falling between 0.9% and 1.7%.

Energy stocks slid 1.9% to hit their lowest level since Oct. 9, with Woodside Energy and Santos losing 1.9% and 1.4%, respectively.

Australian shares inch higher on boost from financials, consumer stocks

Bucking the trend, gold stocks jumped 2.3% to hit their highest level since Oct. 23, fuelled by a rise in bullion prices on safe-haven buying due to an escalation in the Middle East conflict.

Mining stocks climbed 0.5%, with sub-index majors BHP Group and Rio Tinto gaining 0.5% and 1%, respectively. Among individual stocks, shares of Tietto Minerals rose 35.3%, after the gold explorer received an off-market takeover offer from Zhaojin Capital to acquire all shares it does not already own in the company for A$629 million ($398.97 million).

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index retreated 0.5% to 10,718.6.