Ammon News - Gold fell on Thursday as elevated oil prices fuelled fears of ‌inflation and prolonged high interest rates, while investors looked for clarity on the stalled U.S.-Iran peace talks.

Spot gold was down 0.7% at $4,705.37 per ounce, as of 0432 GMT. U.S. gold futures for June ​delivery fell 0.7% to $4,720.90.

Brent crude oil prices remained above $100 a barrel after ​larger-than-expected gasoline and distillate stock draws in the United States, and over ⁠a lack of progress on the peace talks.

Higher crude oil prices can stoke inflation by raising transportation and production costs, increasing the likelihood of higher interest rates.

While gold ​is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing ​on bullion's appeal.

Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on ‌the ⁠strategic waterway after U.S. President Donald Trump called off attacks with no sign of the peace talks restarting.

Trump maintained the U.S. Navy blockade of Iran's trade by sea, and Iran's parliament speaker and top negotiator Mohammad Baqer Qalibaf said a full ceasefire only made ​sense if it was ​lifted.

Spot silver fell 2% to $76.17 per ounce, platinum lost 1.8% to $2,037, ​and palladium was down 1.2% at $1,526.50.

Reuters