Gold Prices Plummet to Seven-Week Low Amid Inflation Fears

Newmont Corporation (NYSE:NEM) and Barrick Mining Corporation (NYSE:B) are among the precious metal stocks that fell in premarket trading on Monday. Gold prices dropped to their lowest level in more than seven weeks, falling below $4,200 an ounce.

The decline in gold prices is attributed to higher oil prices, which fuel inflation concerns and strengthen expectations for further U.S. interest rate increases, according to Trading Economics. UBS analyst Giovanni Staunovo said that 'higher oil prices and rate hike expectations are the main drivers behind gold's recent weakness.' Higher rates raise the opportunity cost of holding gold, which pays no interest.

Other precious metals also saw significant declines, with spot silver falling 4.8% to $61.17 per ounce, platinum dropping 2.4% to $1,735.88, and palladium falling 2.2% to $1,239.60.