On Thursday, gold prices fell to a two-month low as geopolitical tensions between the US and Iran intensified. Spot gold decreased by 1.1% to $4,406.81 per ounce, while US gold futures for June delivery dropped 0.9% to $4,404.90. The rise of the US dollar to a near one-week high made gold more expensive for holders of other currencies. Analysts, including Matt Simpson from StoneX, noted that ongoing geopolitical issues, particularly concerning Iran, are likely to keep the dollar strong and gold prices under pressure. The US military's recent strikes on Iran have raised concerns about inflation as oil prices surged by 2%. Elevated crude prices could prolong high interest rates, which typically negatively affect gold, a traditional hedge against inflation. Federal Reserve Governor Lisa Cook expressed the need to maintain short-term interest rates for now but indicated a willingness to raise them if inflation continues to rise. Investors are closely monitoring upcoming US Personal Consumption Expenditures data for insights into future monetary policy decisions.