Gold prices fell sharply, dropping more than 2% as rising oil prices fueled inflation concerns and reduced expectations for U.S. interest rate cuts.
Spot gold declined 1.4% to $4,441.21 per ounce, while U.S. futures slipped 2.5%, reflecting broad market pressure on precious metals.
The rebound in crude prices above $100 per barrel has intensified fears of persistent inflation, influencing investor sentiment across global markets.
A stronger U.S. dollar, supported by safe-haven demand, has further weighed on gold by making it more expensive for international buyers.
Analysts highlight that rising inflation risks may push the Federal Reserve toward a more hawkish stance, limiting the appeal of non-yielding assets like gold.
Benchmark U.S. 10-year Treasury yields climbed near eight-month highs, increasing the opportunity cost of holding bullion.
Market data from CME Group shows traders now assign minimal probability to rate cuts this year, with expectations shifting toward stable or higher rates.
Other metals also declined, with silver, platinum, and palladium posting notable losses amid broader commodity market weakness.
