Gold slumps to $4,033 on oil surge, Middle East tensions

Gold continued its sharp decline on Thursday, dropping to $4,033 per ounce and extending its recent losing streak. The drop comes as oil prices surge following intensified attacks in the Middle East, reigniting inflationary concerns and fueling expectations that central banks may tighten policy further.

The precious metal has come under pressure as higher energy costs feed into broader inflation fears, dampening demand for non-yielding assets like gold. Market participants are now pricing in a higher probability of rate hikes from major central banks in response to the renewed price pressures.