Gold Tumbles to Three-Week Low as Oil Prices Soar Amid Middle East Conflict

Gold prices fell to their lowest in over three weeks on Wednesday, weighed down by rising oil prices and concerns of higher interest rates. The escalating Middle East conflict has stoked inflation fears, which are limiting gold's appeal as a safe-haven asset.

The US dollar remained firm, making gold more expensive for buyers using other currencies. Spot gold fell 0.6% to $4,304.01 per ounce, its lowest since August 7. US gold futures for December delivery dropped by one percent to $4,350.80.

Bas Kooijman, CEO and asset manager of DHF Capital SA, said that a rebound in oil prices is adding to inflation concerns and tightening monetary policy expectations. He noted that higher interest rates weigh on gold's appeal as it offers no yield.