Gold prices fell in Asian trade on Thursday, sinking back into a trading range seen for more than a week as few signs of de-escalation in the U.S.-Israel war with Iran spurred flows into oil and the dollar. 

While bullion continued to flit between the $5,000-$5,200 an ounce level, it still remained relatively upbeat, as concerns over the war kept some haven demand in play.

Spot gold fell 0.6% to $5,147.05/oz by 01:33 ET (05:33 GMT), while gold futures fell 0.5% to $5,151.86/oz. 

Gold falls as Iran conflict spurs inflation fears, boosts dollar

Weakness in gold came as continued hostilities between the U.S., Israel, and Iran kept market focus squarely on the dollar and oil.

The dollar index rose 0.2% in Asian trade and was close to a two-month high. 

Oil prices jumped sharply on Thursday, briefly rising past $100 a barrel after media reports said two international oil tankers had been struck near Iraq. Other reports showed Oman evacuating a key oil export terminal, while Iran was seen blocking the Strait of Hormuz-- a key supply channel for roughly a fifth of the world’s oil. 

Higher oil prices kept markets largely on edge over a long-term increase in inflation. This in turn fueled concerns over more hawkish central banks in the coming months– a scenario that bodes poorly for gold.

Gold falls as Iran conflict spurs inflation fears, boosts dollar

Weakness in gold came as continued hostilities between the U.S., Israel, and Iran kept market focus squarely on the dollar and oil.

The dollar index rose 0.2% in Asian trade and was close to a two-month high. 

Oil prices jumped sharply on Thursday, briefly rising past $100 a barrel after media reports said two international oil tankers had been struck near Iraq. Other reports showed Oman evacuating a key oil export terminal, while Iran was seen blocking the Strait of Hormuz-- a key supply channel for roughly a fifth of the world’s oil. 

Higher oil prices kept markets largely on edge over a long-term increase in inflation. This in turn fueled concerns over more hawkish central banks in the coming months– a scenario that bodes poorly for gold.