Gold prices are falling due to the shadow cast over interest rate prospects by the conflict in Iran.

The price of gold fell below $4,800 per ounce, suppressed by the strengthening US dollar and fading hope of further interest rate cuts. In early European trading, gold futures prices dropped by 2.9% to $4,755 per ounce; meanwhile, the US dollar index rose by 0.1% to 100.18, making bulk commodities priced in dollars more expensive for foreign buyers. The Federal Reserve kept interest rates unchanged on Wednesday, in line with market expectations, but emphasized the risk of rising inflation due to higher energy prices. Analysts at Rabobank International Group said, "The rise in oil prices comes after tensions in the Middle East have escalated again, with the market increasingly reflecting the risks of disruptions to energy supply and shipping routes." They added, "While geopolitical tensions usually support safe-haven demand, the inflationary impact of rising energy costs is putting pressure on gold."