Gold Prices Crash 3.8% Amid Rising Oil Costs and Stronger Dollar

Spot gold prices plummeted on Monday, reaching a seven-week low as inflation concerns mounted. The metal fell by 3.8% to $4,121.6 per ounce, with earlier prices touching $4,110.5, its lowest level since August 5.

The decline was fueled by higher crude oil prices, which added to inflation pressures and made it harder for the Federal Reserve to ease policy. US Treasury yields also rose, increasing the opportunity cost of holding assets like gold that don't generate regular interest income.

Jim Wyckoff, a market analyst at American Gold Exchange, noted that 'Sharply higher crude prices could point to more persistent inflation and tighter Federal Reserve policy.'