Gold Prices Plummet on Short-Term Inflation Fears

Gold prices have been under intense pressure, with spot gold plummeting to around $4,356.6 per ounce, a decline of over 2% during the day.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, attributes this drop to short-term inflation concerns, partly driven by rising commodity prices.

WTI crude oil prices have surged back above $90 per barrel due to escalating tensions between the US and Iran, as well as prolonged conflict in Ukraine and unfavorable weather conditions globally.

This has led to a 12.4% increase in the Bloomberg Commodity Agriculture Total Return index to its highest level in 14 years.