Oil prices surged more than 1%, with Brent climbing 2% to $106.50 a barrel, stoking inflation fears that could keep the Fed’s policy rate elevated.
US gold futures mirrored the spot decline, slipping 2.1% to $4,231.00.
KCM Trade’s Tim Waterer said high bond yields and soaring oil prices weigh on gold, citing the Fed’s recent 25‑basis‑point hike to 3.75‑4%.
Indian indices opened lower, with the Sensex down 0.89% to 73,236.09 and the Nifty down 0.94% to 22,923, as investors awaited US job data and PCE numbers.
Silver, platinum, and palladium also fell 2.6%, 2.1%, and 2.1% respectively, reflecting a broader precious‑metal sell‑off.
Analysts expect the Fed to keep rates on hold until Q4, while traders monitor upcoming US employment reports for clues on policy direction.