Gold slides below $4,200 as oil rally and strong dollar pressure Fed policy

Gold prices fell below $4,200 per ounce on Monday, dropping 2.1% to $4,198.10, as rising oil prices, a stronger dollar, and higher US Treasury yields fueled expectations that the Federal Reserve will continue tightening monetary policy. The decline marks gold's largest daily loss since September 1, with US gold futures also falling 2.1% to $4,231. Brent crude rose above $106 per barrel after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, while markets priced a 68% chance of another Fed rate hike in October. Analysts noted that higher energy costs are now seen as a reason for the Fed to stay restrictive rather than a boost for gold's inflation-hedge appeal. US 10-year yields near 5.2%, a two-decade high, have increased the opportunity cost of holding gold, with key support levels at $4,200 and $4,000.