Gold Prices Tumble as Oil Rises and Dollar Strengthens

Gold prices plummeted to their lowest level in over seven weeks after rising oil prices fueled inflation concerns and strengthened expectations of tighter monetary policy.

The spot price of gold fell by 4% on Monday, reaching $4,136.81 an ounce at 1:30 p.m. ET (1730 GMT), its lowest point since August 5.

A stronger US dollar and higher Treasury yields contributed to the decline in gold prices, making it more expensive for overseas buyers and increasing the opportunity cost of holding non-yielding gold.

Jim Wyckoff, a market analyst at American Gold Exchange, attributed the sharp drop in metal prices to 'a perfect storm' created by rising crude oil prices, higher Treasury yields, and a strengthening dollar.