Gold Prices Tumble as Oil-Driven Inflation Concerns and US-Iran Tensions Lift Dollar

Gold prices declined by 0.3% to $2,350 per ounce in early trading due to rising oil-driven inflation concerns and escalating US-Iran tensions that strengthened the US dollar.

The correlation between oil prices and the dollar has been particularly strong this week, with the dollar index rising 0.4% against a basket of major currencies.

This dynamic has offset gold's traditional safe-haven appeal as investors weigh the impact of inflation on central bank policy.