Gold Tumbles as Inflation Concerns and Rate Hikes Loom

Gold prices softened on Friday, retreating from earlier gains as investors weighed the prospect of Federal Reserve rate hikes. The yellow metal had fallen 2% in the previous session and was now down over $120 from a two-week high reached on Wednesday.

The decline came as Brent crude oil surged past $100 a barrel for the first time since May, stoking inflation concerns that could lead to higher interest rates. U.S. gold futures for August delivery also edged lower, falling 0.1% to $4,045.60 per ounce.

Despite this pullback, gold was still on track for a small weekly gain of 0.6%. The metal's appeal is often reduced when interest rates rise, as investors seek higher-yielding assets instead of non-yielding gold.