Gold Prices Tumble as Inflation and Interest Rates Soar

The price of gold plummeted this week, erasing half of August's surge as investors grew increasingly concerned about rising inflation and interest rates. The cost of living across the Eurozone rose 3.3% per year in August, its fastest pace in almost three years.

This has led to a sharp increase in long-term interest rates, with Japan's 10-year borrowing costs breaking above 3.0% per annum, and the UK's 30-year Gilt yield topping 5.90%, levels not seen since 1998.

Bullion prices in London fell to $4327 per troy ounce, down 7.8% from last Tuesday's 15-week high, while silver lost nearly $7 per ounce from Friday's new 10-week peak.