Gold Prices Plummet Amid Escalating Tensions with Iran

Gold prices have fallen to a nearly four-week low as tensions between the US and Iran escalate, stoking inflation fears and reaffirming expectations of a Federal Reserve rate hike in September.

The US Dollar (USD) has strengthened amid rising oil prices and heightened geopolitical risk, weighing on gold's appeal as a safe-haven asset.

According to Societe Generale's rates strategists, the recent bond market sell-off leaves the US curve vulnerable to further upside in long-end yields, with 10-year yields potentially reaching 5%.

The release of the US monthly employment details, also known as the Nonfarm Payrolls (NFP) report, on Friday will be closely watched for cues about the Fed's future policy outlook and its impact on gold prices.