Ammon News - Gold fell to a three-week low on Tuesday, ‌as elevated oil prices kept inflation concerns high, while investors awaited key central bank decisions this week to see if the Middle East conflict has altered the interest rate outlook.

Spot gold was ​down 1.1% at $4,628.88 per ounce, as of 0553 GMT, its lowest level since ​April 7. U.S. gold futures for June delivery fell 1.1% to $4,643.70.

U.S. ⁠President Donald Trump is unhappy with the latest Iranian proposal on resolving the two-month war, ​a U.S. official said, dampening hopes for a resolution to the conflict that has ​disrupted energy supplies, fuelled inflation, and killed thousands.

The dollar edged higher, and oil prices hovered above $110 a barrel, as the crucial Strait ‌of ⁠Hormuz waterway remained largely shut.

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 its ​appeal.

Spot silver fell 3% to $73.23 per ounce, platinum lost 1.5% to $1,953.50, and palladium was ​down 2.1% at $1,445.50.

Reuters