Gold Dives Ahead of Fed Meeting Amid Crude Oil Surge

Gold prices continued their decline on Friday ahead of next week's Federal Reserve meeting. The metal fell 0.4% to $4,030.09 per ounce, down more than $130 from its two-week high reached on Wednesday.

The drop in gold comes as Brent crude oil surged 7% on Thursday, breaking above $100 a barrel for the first time since May. Elevated crude prices have stoked inflation concerns and strengthened the case for higher interest rates.

Despite being traditionally seen as a hedge against inflation, gold loses its appeal as a non-yielding asset in a high-interest-rate environment, said Brian Lan, Managing Director of GoldSilver Central.