Gold Prices Plummet as Inflation Concerns Return

Gold prices declined on Thursday as investors took profits from the previous session's gains and focused on inflation concerns, fueled by rising oil prices. The US dollar and bond yields had dropped sharply after the Treasury announced it would increase buybacks of longer-dated bonds.

Spot gold fell 0.8 percent to $4,484.95 per ounce by 09:53 a.m. EDT (1353 GMT), retreating from its highest since June 2, which was reached earlier in the session. US gold futures edged 0.1 percent lower to $4,539.50.

Jim Wyckoff, a market analyst at American Gold Exchange, attributed the decline to routine profit-taking pressure following the previous session's strong gains. He also noted that hawkish Federal Reserve minutes and higher oil prices had undermined gold.