Gold prices fell to a two-month low as fresh US attacks on Iran boosted the dollar and pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook, Reuters reports.
Spot gold was down 1.7 per cent at $4,380.62 per ounce, as of 0409GMT, earlier falling to its lowest level since March 26. US gold futures for June delivery fell 1.6% to $4,377.10.
The dollar rose to a one-week high, making greenback-priced bullion more expensive for holders of other currencies.
“Geopolitical tensions remain high, and we’ve had too many false alarms from the peace deal talks. So I think the US dollar is going to remain bid, and that means gold is likely to remain under pressure,” said Matt Simpson, a senior analyst at StoneX.
