Gold Drops Below $4,370 as Oil Prices Approach $100

Gold and silver prices declined in late Tuesday trading due to rising crude costs, higher Treasury yields and firmer Fed rate-hike bets, which outweighed safe-haven flows from U.S.-Iran tensions. Gold stood near $4,368.60 an ounce, down 0.83%, while silver traded at $65.830, off 0.32%.

North American equities closed lower, with the S&P 500 losing 0.6% and the Dow Jones dropping 1.2%, as oil-driven inflation concerns grew. Focus now shifts to this week’s inflation data and next week’s Fed meeting, where markets price a 60% chance of a rate increase. The 10-year Treasury yield climbed to 4.80%.

Brent crude neared $100, hitting $99.46 before settling at $97.92 amid Strait of Hormuz risks, with Goldman Sachs warning of possible spikes above $120. This weighs on gold via higher yields despite geopolitical support. Technically, gold faces resistance at $4,422 and support near $4,365.