Gold falls as Iran tensions fuel inflation concerns

Gold prices fell on Tuesday after renewed US military strikes in Iran pushed oil prices higher, raising concerns that inflation could remain elevated and keep interest rates higher for longer, Reuters reported. 

Spot gold fell 0.7 percent to $4,537.54 an ounce by 02:18 GMT, while US gold futures for June delivery edged up 0.3 percent to $4,538.50.

Analysts said higher oil prices have renewed fears of inflationary pressure, increasing expectations that central banks may maintain tight monetary policy.

The market reaction followed reports of fresh US military action in southern Iran, which also contributed to gains in crude oil prices.