Gold falls amid rising oil prices and higher US dollar

Gold hits seven-week low; silver follows suit and records a nearly 5 percent loss.Gold prices are falling as concerns of rising fuel prices stoke Inflation worries on the back of the war between the United States and Iran.Spot Gold prices fell by 3.3 percent to reach a more than seven-week low at $4,146.51 per ounce on Monday.Recommended Stories list of 4 itemslist 1 of 4Collapsing currency and Inflation leave families struggling in Sudanlist 2 of 4How US sanctions on Iran ripple through global markets and consumerslist 3 of 4Canada hits US with counter-tariffs on more than 700 productslist 4 of 4Rising petrol costs drive sharp Inflation increase in US in Augustend of listRising Oil prices, a higher US Dollar and Treasury yields stoked Inflation concerns, creating further headwinds for the metal.This is the lowest level for Gold values since August 5. US Gold futures also fell by 3.3 percent to $4,178.40.Although Gold is traditionally considered an Inflation hedge, higher interest rates dent ⁠its appeal as investors prefer yield-bearing assets.“There might be no notable direct impact on regular people due to that. However, investors who had turned to Gold will see a hit, especially under the current high Inflation rates,” Sherif Othman, CEO of the Maryland-based Poise Investment Advisors, told Al Jazeera.“Gold does not yield interest, so when Treasury yields go up, investors turn away from Gold, impacting its value”, he added.The Fed lifted benchmark rates by a quarter ⁠percentage point earlier this month and flagged that at least one more hike is likely in the coming months.The US Dollar was steady near a two-month high, and Oil prices spiked about 3 percent as US President Donald Trump rejected an Iranian offer ⁠to resolve the conflict and reopen the Strait of Hormuz.Such factors triggered several policymakers to warn that Inflation risks remain elevated and that interest rates may need to rise, with Cleveland Fed President Beth Hammack among the latest officials to reiterate that view.