Gold prices moved lower in global markets on Monday as Brent crude oil surged above $90 per barrel, raising fresh concerns about inflation and increasing pressure on financial markets.
The drop in gold came after several Federal Reserve officials suggested that another interest rate hike could still be possible if inflation remains stubborn. Higher interest rates typically reduce the appeal of gold because the metal does not pay interest.
Spot gold slipped 0.1% to $4,014.53 per ounce by 5:42 a.m. Baghdad time, while U.S. gold futures for August delivery were trading at $4,019.80 per ounce.
Other precious metals showed mixed performance. Silver posted strong gains, rising 1.9% to $56.95 per ounce. Platinum also moved higher, adding 0.5% to reach $1,599.97 per ounce. Palladium, however, edged down 0.2% to $1,244.50 per ounce.
Investors are now closely watching both oil prices and Federal Reserve policy signals, as rising energy costs and the possibility of higher interest rates continue to influence global market sentiment.
