Gold prices fell to a two-month low on Thursday, driven by renewed uncertainty over the U.S.-Iran conflict, which bolstered the dollar and pushed oil prices higher.
ET, spot gold was trading around 1.6% lower, marking a sharp reversal from earlier gains in the same region.
The decline highlights a shift in, with investors favoring the dollar and energy assets over traditional safe-haven commodities.
This trend is further supported by recent speculation that a potential resolution to the U.S.-Iran standoff could ease geopolitical risks, reducing the demand for gold as an inflation hedge.
The broader context of this move includes a recent surge in gold and silver prices, which had climbed 1.2% to $4,750 per ounce earlier in the week.
However, the renewed Middle East tensions have now reversed earlier optimism, with oil prices rising and threatening to undermine recent stock market rebounds in regions like India.