Gold falls as lack of progress in Iran war escalates inflation concerns.

The price of gold fell as stalled negotiations with Iran pushed up energy prices, sparking concerns about inflation and expectations that central banks will maintain high interest rates for longer. Analysts at ING Group said, "The longer the strait remains closed, the greater the oil impact, and the idea of Brent crude falling to $80 or below becomes increasingly distant." "This view dominates the interest rate market, where short-term yields remain very strong as the market believes many central banks will have to react to this inflation shock." In early European trading, New York gold futures fell by 0.6% to $4,698.30 per ounce.