Gold prices have experienced a significant decline of over 13% since the beginning of the U.S.-Israeli war with Iran on February 28. As of now, spot gold is priced at $4,557.25 per ounce, marking a 2% drop today and its lowest level since May 6. This week alone, gold has lost 3.3% in value. The downturn is attributed to rising oil prices, which have increased inflation fears and led to expectations of higher interest rates. U.S. gold futures for June delivery also fell by 2.7%, now at $4,561.30. The strengthening dollar has further pressured gold prices, making it less attractive for international buyers. Additionally, Brent crude oil prices have risen by 6.6% this week, currently hovering above $108 per barrel, exacerbating inflation concerns. Market analysts suggest that high interest rates typically diminish the appeal of gold as a non-yielding asset. With traders pricing out potential U.S. interest rate cuts this year, the outlook for gold remains uncertain amidst ongoing geopolitical tensions.