Gold Prices Plummet Amid Dollar Strength

Gold prices have fallen to their lowest level in more than three weeks amid a strengthening dollar and fears of rising global inflation.

The spot price of gold declined by 0.6% to $4,302.20 per ounce on Wednesday, with the last time it was this low being August 7.

The rise in oil prices due to escalating tensions between the US and Iran has heightened inflationary risks, causing investors to buy dollars more aggressively and pushing its exchange rate to a two-week high.

A stronger dollar makes gold more expensive for buyers using other currencies, adding pressure on the precious metal.