Gold prices experience sharpest drop since September 1
Due to rising inflation concerns and bond yields in global markets, the spot price of gold fell below $4,200 per ounce.
Gold prices started the new week under heavy selling pressure, with the spot price of gold dropping below the $4,200 level, heading toward one of its sharpest daily losses since September 1.
Sharp decline in gold per ounce
Gold prices lost value as global markets started the new week, and the spot price of gold fell below the $4,200 level.
In the early hours of the day, gold per ounce lost 2.1 percent in value, falling as low as $4,198.10.
Inflation and interest rate pressure
While the rise in oil prices reignited global inflation concerns, expectations regarding the U.S. Federal Reserve's interest rate policy also strengthened.
The high interest rate environment and the increase in bond yields reduced the appeal of gold, which is seen as a safe haven, creating selling pressure on the precious metal.
Market analysts' assessments
Investors in the markets continue to closely monitor new expectations regarding the U.S. economy and upcoming critical data.
Tim Waterer, Chief Market Analyst at KCM Trade, stated that high bond yields and volatility in oil prices played a role in this decline process for gold.