Brent crude oil has breached the $100 per barrel threshold, triggering a sharp repricing across global markets as investors weigh the inflationary impact of soaring energy costs.
The surge in oil prices has coincided with a retreat in precious metals, with spot gold extending losses as the prospect of tighter monetary policy gains traction.
The cross-asset reaction underscores a growing consensus that the Federal Reserve may need to raise interest rates later this year to counteract the inflationary pressure from elevated energy prices.
Gold, which had been supported by safe-haven demand, is now facing headwinds from a strengthening U.S. dollar and rising real yields.
Comex gold and silver futures have extended their declines for a third consecutive session, reflecting the shift in market sentiment toward a hawkish Fed outlook.
The oil price spike is driven by geopolitical tensions, including threats of military action against Iran and its allies, which have heightened concerns over supply disruptions in key shipping routes.