Gold Falls as Crude Prices Soar Above $100 a Barrel

Gold prices continued to decline on Friday, extending losses from the previous session. The metal fell 2% in the prior trading day, and further dropped 0.4% to $4,030.09 per ounce by 0333 GMT. This comes as Brent crude oil surged 7% on Thursday, breaking above $100 a barrel for the first time since May.

The rise in crude prices has raised concerns about inflation, which in turn strengthens the case for higher interest rates ahead of the Federal Reserve's policy meeting next week. Although gold is traditionally seen as a hedge against inflation, it loses its appeal as a non-yielding asset in a high-interest-rate environment.

Brian Lan, Managing Director of GoldSilver Central, noted that gold has been trading within a narrow range between $3,980 and $4,170 for weeks. He expects more volatility in the short term, with big buyers likely to step in when prices approach $4,000 or slightly below.