Gold Prices Plummet Amid Crude Oil Surge

Gold prices plummeted to their lowest in seven weeks on Thursday as crude oil surged towards $100, fueling expectations of higher interest rates. Spot gold fell by 3.8% to $4,121.6 per ounce, its lowest since August 5, while US gold futures dropped 3.9% to $4,153.7.

Jim Wyckoff, a market analyst at American Gold Exchange, attributed the decline in gold prices to the sharp rise in crude oil and inflationary pressures. 'We've got crude oil prices sharply higher,' he said. 'And that suggests still more problematic price inflation, which suggests a tighter Fed Reserve monetary policy.'

The combination of higher Treasury yields and a strong US dollar also contributed to the decline in gold prices. Wyckoff described it as 'a perfect storm' that pushed metal prices lower.