Gold Prices Plummet on Oil Surge and Tightening Fed Interest Rates

Gold prices took a hit at the start of the trading week as rising oil costs fueled inflation concerns and expectations for tighter US Federal Reserve interest rates.

The price of an ounce of gold fell to $4,170, marking a 2.6% decline from the previous close of 0640GMT on Monday.

The surge in crude prices was triggered by reports that US President Donald Trump rejected a seven-day cease-fire proposal offered by Iran to reopen the Strait of Hormuz and ease tensions in the region.

Brent futures rose to $107 per barrel, up 2.6%, while WTI increased to $94, up 1.5%.