Gold Prices Slump as Oil Surges Past $100 a Barrel

Gold prices took a sharp hit on Thursday, plummeting 1.97 percent to $4,053.40 an ounce after briefly touching a two-week high of $4,165.87 earlier in the session.

The sudden reversal erased gains built on geopolitical anxiety, as a surge in crude prices reshuffled the market's priorities.

Brent crude jumped 6.5 percent to reclaim the $100-a-barrel threshold for the first time since late May, settling at $100.05.

This oil price spike is a double-edged sword for gold, as it typically stokes haven demand but feeds inflation expectations that reinforce bets on tighter monetary policy, a toxic mix for a non-yielding asset.