Spot gold fell 0.8% to $4,501.54 per ounce by 02:57 ET (06:57 GMT); U.S. gold futures dropped 1.3% to $4,532.22.
The decline followed fresh US‑Iran military exchanges: US forces struck Iranian air‑defence and drone sites after an Iranian downed a US drone; Iran retaliated by attacking a US‑used air base; regional air defenses intercepted missiles and drones; Israel moved troops deeper into southern Lebanon amid intensified fighting with Hezbollah.
Crude oil prices rebounded, raising concerns that energy costs will stay high and could complicate the Federal Reserve’s fight against inflation.
The US Dollar Index rose 0.1% in Asian trading, adding pressure on gold by making it more expensive for holders of other currencies.
Inflation fears and the prospect of further Fed monetary tightening resurfaced; investors had previously expected a rate cut before the conflict.
Silver edged up 0.5% to $75.69/oz, platinum rose 1.1% to $1,940.95/oz, and benchmark copper futures on the LME and US markets each gained 0.3% (LME $13,663.33/ton, US $6.44/lb).
Traders are awaiting upcoming Federal Reserve speeches and U.S. labor market data for additional clues on the interest‑rate outlook.
