Gold prices fell to a two-month low on Thursday as fresh ‌US attacks on Iran boosted the dollar and pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.

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.