Gold at Risk as Oil Prices Soar Towards $100

Gold prices remain volatile as rising energy costs and strong producer inflation fuel concerns about the inflation outlook. The surge in oil prices above $100 is putting pressure on gold, which could be pushed towards $4,000 if the trend continues.

The inflation data release has created fresh worries for gold investors, with rising energy costs and strong producer inflation supporting the case for a hawkish Federal Reserve. This may lead to higher Treasury yields, creating short-term pressure on gold.

However, central banks' demand for gold and higher public debt still support the bullish outlook in the long term. A break below $4,270 could open the way towards $4,160, according to some analysts.