Gold Falls to Monthly Low as Renewed US-Iran Fighting Fuels Inflation Concerns

Gold fell to its lowest level this month early Monday amid heightened inflation worries following renewed fighting between Iran and the U.S. over the weekend. Gold for August delivery was last seen down $44.10, or 1.1%, to $4,069.60 per ounce, the lowest since June 30. The US on the weekend struck sites in Iran, while Tehran targeted shipping in the Strait of Hormuz and US assets in neighboring countries. Iran also renewed its threat to close the Strait, the chokepoint through which about 20% of global oil consumption moves before reaching international markets. The fresh fighting pushed up oil by nearly 4%, feeding the inflation worries that have dominated trading since the Feb. 28 start to the war, heightening concerns central banks will need to raise interest rates to combat rising inflation, sending investors to the dollar and bonds and away from gold. "Precious and industrial metals are once again under pressure as renewed hostilities in the Gulf rekindle concerns about inflation and the risk of further Federal Reserve tightening, creating additional headwinds through higher bond yields and a stronger dollar," Saxo Bank wrote. Still, the dollar was steady early, with.