Gold falls to a one-year low as rate worries return

Gold dropped about 2% to around $3,944 an ounce on Friday, extending a slide that took the metal to its lowest level in roughly a year. The pressure came as rising oil prices revived inflation concerns and led investors to expect U.S. interest rates to stay high or rise further. That matters because gold pays no interest, while cash and government bonds become more rewarding when rates are higher. The move shows why gold’s reputation as an inflation hedge does not always protect it in the short term: when inflation points toward tighter monetary policy, the cost of holding a non-yielding asset can outweigh that appeal.