Spot gold was down 1.5% at $4,388.76 per ounce, ​earlier falling to its lowest level since March 26.

US gold futures for ​June delivery fell 1.4% to $4,386.

The dollar rose to a one-week high, making greenback-priced ⁠bullion more expensive for holders of other currencies.

“Geopolitical tensions remain high, and we’ve had ​too many false alarms from the peace deal talks.

So I think the US dollar ​is going to remain bid, and that means gold is likely to remain under pressure,“ said Matt Simpson, a senior analyst at StoneX.

The US military carried out new strikes in Iran targeting a military ​site that officials believed posed a threat to US forces and commercial shipping in ​the Strait of Hormuz, a US official said, hours after President Donald Trump dismissed an Iranian report ‌of ⁠a deal to restore traffic through the strategic waterway.

Oil prices jumped more than 3% on Thursday after Iran’s Revolutionary Guards said they targeted a US airbase in response to the US attack.

Elevated crude prices can accelerate inflation and keep interest rates higher for longer. While ​gold is seen as ​a hedge against ⁠inflation, higher rates tend to weigh on the non-yielding metal.

Federal Reserve Governor Lisa Cook on Wednesday said she feels the US central ​bank should hold short-term interest rates steady for now, but, with ​tariffs, the ⁠Iran war, and a surge in AI-related investment pushing prices higher, she is prepared to hike rates if needed.

Focus is also on the US Personal Consumption Expenditures data, due later in ⁠the day, ​for cues on the Fed’s monetary policy path.

Spot silver ​fell 1.7% to $73.36 per ounce, and platinum lost 1.1% to $1,897.80.

Both metals earlier hit a near one-month low. Palladium slid 1.2% ​to $1,373.58.