Spot gold declined 1% to $4,091.17 per ounce in international trading, while silver dropped nearly 2% to $58.65 per ounce.
The sell-off in precious metals coincided with a sharp rise in crude oil prices, which is intensifying market concerns about persistent inflationary pressures.
The move in gold follows a period of volatility for the metal, which recently hit a one-week high of $4,063 before retreating.
The move in gold follows a period of volatility for the metal, which recently hit a one-week high of $4,063 before retreating.
The current decline suggests that traders are increasingly weighing the risk of higher energy costs against the prospect of near-term interest rate cuts.
As oil prices surge, the narrative around monetary policy easing is becoming more complex, with markets pricing in potential delays to rate reductions.
This development extends the recent weakness seen in global bullion trading.