Gold Slumps to Seven-Week Low Amid Inflation Concerns

Gold prices plummeted to a seven-week low on Monday after rising oil prices fueled inflation concerns and strengthened expectations of tighter monetary policy.

Rising energy costs can add to inflationary pressure, encouraging central banks to keep interest rates elevated for longer.

Cleveland Fed President Beth Hammack echoed the hawkish stance, warning that inflation risks remain elevated and rates may need to rise further.

Spot gold dropped 4% to $4,136.81 an ounce, its lowest level since August 5, while US gold futures settled 3.5% lower at $4,168.40.