Gold falls as dollar and oil prices climb on June 3
Spot gold fell 0.5% to $4,463.74 on Wednesday as renewed Middle East hostilities pushed oil prices higher and strengthened the dollar. Investors are weighing the impact of rising energy costs on inflation, which may prompt the Federal Reserve to consider interest rate hikes later this year.
Gold fell 0.5% to $4,463.74 on June 3 as a strengthening dollar and rising energy costs pressured the metal. Prices slipped toward the $4,450 support level after Middle East hostilities intensified, dimming hopes for a swift diplomatic resolution between the United States and Iran. The shift reflects growing investor concern that persistent inflation will force the Federal Reserve to maintain higher interest rates through year-end.
### Middle East Conflict Drives Inflation Fears Gulf hostilities flared on Wednesday after an Iranian missile attack damaged an airport in Kuwait. In response, the U.S. military conducted strikes near the Strait of Hormuz. These clashes have kept West Texas Oil prices elevated for a third consecutive session.
