Gold Tumbles from Seven-Week High Amid Stronger Dollar and Inflation Concerns

Gold prices dropped by 0.2% on Monday to $4,332.68 per ounce after reaching a seven-week high in the previous session. The decline came as the US dollar strengthened, making gold more expensive for holders of other currencies.

The dollar's gain was 0.2%, and oil prices edged higher due to optimism over talks to reopen the Strait of Hormuz. However, Iran's insistence that the United States must satisfy several demands before the waterway can reopen capped gains in oil prices.

Gold is traditionally seen as an inflation hedge, but it loses its appeal in a high-interest-rate environment. Economists polled by Reuters expect the July consumer price index to have risen 3.4% year-on-year, compared with 3.5% in June.