Gold prices experienced a significant drop, with the GLD ETF falling over 1.9%, as a surge in oil prices intensified concerns about persistent inflation. This has led to increased market expectations that the Federal Reserve will maintain its hawkish monetary policy and keep interest rates elevated for a longer period to combat inflationary pressures. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, making it less attractive to investors and prompting a sell-off.