Gold Takes Sharp Hit as Oil Prices Soar and Interest Rate Pressures Mount

Gold prices took a sharp hit at the start of the week as inflation concerns and expectations for higher interest rates weighed on investors. The precious metal retreated to $4,170 per ounce with a 2.6% loss in the first trading day of the week.

The decline was linked to rising oil prices, which have increased production and consumption costs and put pressure on gold. Brent futures are traded at $107 per barrel, up 2.6%, while WTI is at $94, up 1.5%.

US President Donald Trump's rejection of a seven-day cease-fire offer made by Iran through mediators to open the Strait of Hormuz has also contributed to the rise in oil prices.