Gold Prices Plummet Amid US-Iran Tensions

Gold prices have dropped to their lowest in over three weeks as tensions between the US and Iran escalate, fuelling inflation and rate-hike fears.

The spot price of gold fell by 0.6% to $4,304.01 per ounce at 0017 GMT on Wednesday, its lowest since August 7.

This decline marks a fourth consecutive session of losses for gold prices, which remain below the 200-day moving average, a closely watched technical level.

The US dollar remains strong, making it more expensive for buyers using other currencies to purchase greenback-priced metals.

Bas Kooijman, CEO and asset manager of DHF Capital S.A., attributed the decline in gold prices to the rebound in oil prices following the renewed US-Iran tensions, which have added to inflation concerns.