Gold spot fell 0.8% to $4,792.41/oz and futures dropped 1.4% to $4,811.99/oz amid rising Iran tensions.
Oil prices surged up to 7% after Iran closed the Strait of Hormuz, stoking inflation concerns and boosting the dollar index 0.1%.
Analysts at FXTM and OCBC warned higher inflation expectations and possible rate hikes keep gold’s near‑term outlook tied to risk sentiment.
US forces captured an Iranian vessel in the Strait, with President Trump saying envoys will seek ceasefire talks.