Gold Prices Slump 2.8% as Oil Costs Rise Amid US-Iran Tensions

Gold prices plummeted on Friday as rising oil costs and increasing Treasury yields pushed up interest rates. The precious metal fell by 2.8% to $4,164.15 an ounce at 2:59 p.m. in Singapore.

The decline is attributed to the ongoing US-Iran impasse over the Strait of Hormuz, which has kept energy costs elevated and put pressure on the Federal Reserve to raise interest rates again.

Oil prices rose with no progress made in recent talks, contributing to a surge in Treasury yields. This move has blunted precious metals' appeal, causing gold to drop below $4,165 an ounce.

Analyst Justin Lin noted that gold remains highly sensitive to oil prices and shifting expectations around a potential resolution in the Middle East.