Gold prices experienced a significant drop in the pre-market session, with the GLD ETF falling over 3%. The decline is primarily attributed to rising oil prices, which are fueling concerns about inflation. This has, in turn, reinforced expectations that the Federal Reserve will implement further interest rate hikes to curb inflationary pressures. Consequently, a stronger U.S. dollar and surging Treasury yields have increased the opportunity cost of holding non-yielding bullion, putting downward pressure on gold prices.