Gold Prices Tumble As US-Iran Tensions Revive Rate-hike Fears

Gold prices were sharply lower on Wednesday as the dollar strengthened and global bond yields surged on renewed Middle East tensions.

Spot gold tumbled 1.3 percent to $4,052.96 an ounce while U.S. gold futures were down 2.3 percent at $4,062.79.

The U.S. dollar held around its highest level in a week, Japanese government bond yields surged to multi-decade highs, and Euro zone bond yields reached their highest levels in nearly a month as renewed Middle East tensions drove up crude oil prices, threatening inflation outlook and giving rise to Fed rate hike expectations.