Gold prices have slumped to a two-month low, dropping nearly 2% to around $4,365 an ounce, primarily due to escalating tensions between the US and Iran. Recent US military strikes on Iranian targets near the Strait of Hormuz have raised concerns about the stability of peace negotiations, further dampening market sentiment. The stronger US dollar has also contributed to gold's decline, making it less attractive to international buyers. Additionally, the surge in Brent oil prices, approaching $98 a barrel, has intensified inflation fears and raised expectations for interest rate hikes. Federal Reserve Governor Lisa Cook's comments on inflation indicate a potential shift in monetary policy, which could further impact gold prices. Market indicators show a significant drop in implied volatility for gold, suggesting that traders are losing confidence in its safe-haven status. Analysts predict that gold may find support in the $4,000 to $4,250 range if oil prices continue to rise.