Brent crude oil surged past the US$90 per barrel threshold on Monday, driven by escalating geopolitical tensions in the Middle East.
The sharp rise in energy costs has intensified market anxiety regarding inflationary pressures, complicating the outlook for global central banks.
The spike in oil prices triggered a cross-asset reaction, with gold prices retreating as investors reassessed the balance between safe-haven demand and rising interest rate expectations.
Several US Federal Reserve policymakers have recently signaled a willingness to raise interest rates if inflationary pressures persist, a stance that is increasingly overshadowing the traditional appeal of bullion as a hedge against uncertainty.
Gold is on track to record its largest weekly loss since early June, as mounting bets on tighter monetary policy continue to weigh on the precious metal.
The metal also faces the prospect of its steepest monthly decline since October 2008, driven by shifting Federal Reserve policy expectations rather than a lack of geopolitical risk.