Gold falls after oil tops $100, dimming rate cut hopes
Gold prices slid on Thursday after oil prices remained above $100 a barrel, sparking fresh concerns about inflation and making investors rethink hopes for interest rate cuts.
Spot gold dropped 0.7% to $4,705.09 per ounce, while US gold futures for June delivery fell to $4,722.10.
The market's feeling the heat from unexpected larger-than-expected gasoline and distillate stock draws in the United States, and stalled talks between the US and Iran.
Inflation worries may delay Fed cuts
When oil gets pricier, everyday costs can go up too, raising worries about inflation.
While gold is usually a go-to during uncertain times, higher interest rates make other investments more tempting right now.
The US Federal Reserve might even hold off on cutting rates this year thanks to stubborn inflation and ongoing global tensions.
So if you're following where money moves next, these shifts are worth keeping an eye on.