Gold prices fell to their lowest level in nearly a week under pressure from a stronger dollar, while the sharp rise in energy prices intensified inflation concerns and reduced expectations that the Federal Reserve (the U.S. central bank) will cut interest rates this year.
Spot gold fell 1.1 percent to $4,694.30 per ounce, its lowest level since April 7. U.S. gold futures for June delivery dropped 1.4 percent to $4,717.80. The dollar index rose, increasing the cost of dollar-denominated gold for holders of other currencies. Oil prices jumped above $100 a barrel, stoking inflation fears, as the U.S. Navy prepares to assert control over the Strait of Hormuz, a move that could curb Iranian oil shipments after the United States and Iran failed to reach an agreement to end the war. Iran's Revolutionary Guard responded by warning that military vessels approaching the strait would be considered in violation of the ceasefire and would be dealt with firmly and decisively, signaling the possibility of a dangerous escalation.
