Spot gold prices fell sharply on Thursday, dropping more than 2% to trade at $4,001.17 per ounce.
The decline marks a notable reversal for the precious metal, which has faced mounting pressure from a combination of rising energy costs and strengthening US Treasury yields.
The sell-off reflects a broader shift in market sentiment, as investors move away from traditional safe-haven assets in response to evolving macroeconomic conditions.
The primary driver of the retreat appears to be the dual pressure from higher borrowing costs and elevated oil prices.
As US Treasury yields climbed, the opportunity cost of holding non-yielding assets like gold increased, prompting profit-taking and repositioning.
Simultaneously, rising energy costs contributed to inflationary concerns, further complicating the outlook for precious metals.