GOLD DROPS OVER 1 % AS OIL RALLY REINFORCES HIGHER - FOR - LONGER RATE OUTLOOK

What happened: Gold fell more than 1 per cent on Thursday as rising oil prices stoked inflation concerns and reinforced expectations that rates could stay higher for longer. Why it matters: OANDA's Kelvin Wong said continued oil gains could lift inflation expectations and raise the likelihood of higher rates over the longer term, weighing on gold. Elevated rates reduce gold's appeal by raising the opportunity cost of holding the non-yielding asset.

Gold falls over 1% as oil rally reinforces higher-for-longer rate outlook.

Gold falls over 1% as oil rally reinforces higher-for-longer rate outlook. — impact context not separately stored; see What changed.