Gold Takes Hit as Brent Tops $100 and Rate Hike Expectations Rise

Gold prices took a hit on Friday as investors grew concerned about potential rate hikes by the US Federal Reserve. The precious metal's value declined due to rising crude oil prices, which reached new heights with Brent topping $100. This surge in inflation concerns and higher interest rate expectations is making a strong case for rate hikes.

Market participants are pricing in an 81% chance of a September rate hike, sending US Treasury yields soaring to their highest levels since January 2025. The increased expectation of tighter monetary policy has weighed on gold prices, causing other precious metals like silver, platinum, and palladium to decline as well.