Gold falls amid rising oil prices and higher US dollar

Gold prices are declining as worries of escalating fuel prices fuel inflation concerns following the conflict between the United States and Iran. On Monday, spot gold prices experienced a 3.3 percent decrease, reaching a seven-week low of $4,146.51 per ounce. The surge in oil prices, a stronger US dollar, and rising Treasury yields amplified inflation concerns, presenting additional challenges for the precious metal.

This marks the lowest point for gold values since August 5. US gold futures also declined by 3.3 percent, settling at $4,178.40. While gold is typically viewed as a safeguard against inflation, higher interest rates diminish its attractiveness as investors opt for assets that generate income. Sherif Othman, CEO of Poise Investment Advisors based in Maryland, stated to Al Jazeera that "there might be no notable direct impact on regular people due to that.

However, investors who had turned to gold will see a hit, especially under the current high inflation rates." He further explained, "Gold does not yield interest, so when Treasury yields go up, investors turn away from gold, impacting its value."