Gold Loses Luster as Brent Crude Surges Past $100

Gold prices softened on Friday as Brent crude oil surged to over $100 per barrel, sparking inflation concerns and strengthening the case for higher interest rates ahead of a Federal Reserve policy meeting next week.

The precious metal extended its losses from Thursday's session, with spot gold easing 0.4% to $4,030.09 per ounce by 0333 GMT.

Bullion has been trading in a narrow range between $3,980 and $4,170 for weeks, with big buyers stepping in to purchase it whenever prices dip below $4,000.

Gold's appeal as an inflation hedge is diminishing in a high-interest-rate environment, making the metal less attractive to investors seeking non-yielding assets.