Gold prices drop as oil costs lift rate hike expectations
Gold prices fell 1 percent as rising oil costs fueled inflation concerns and boosted rate hike bets. Higher yields and a stronger dollar pressured the metal.
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Gold fell 0.8% to $4,508.04 per ounce during late morning on May 21 as rising energy costs fueled expectations for higher interest rates. The decline reversed a 1% gain from the previous day when bullion recovered from its lowest level since late March. Investors are pivoting toward the dollar and Treasury yields as inflation risks resurface, reducing the appeal of non-yielding assets.
