09:03 AM EDT, 07/08/2026 (MT Newswires) -- Gold traded lower early Wednesday as renewed fighting between Iran and the U.S. boosted oil prices and the dollar, reviving inflation fears that weighed on the precious metal.

Gold for August delivery was last seen up $76.10, or 1.8%, to $4,081.30 per ounce, the lowest since June 30.

The drop follows renewed fighting between the U.S. and Iran following Iranian strikes on ships moving through the Strait of Hormuz. Trump told reporters at the NATO summit in Turkey the ceasefire agreement between the two countries is "over". The U.S. on Tuesday also re-imposed sanctions on Iranian oil exports that were lifted after the June 18 ceasefire deal.

"Gold initially fell as renewed oil-price strength clouded the inflation and rate outlook. However, despite 10-year real yields trading near an 18-month high and adding to the headwinds facing non-yielding assets, bullion has so far found support around USD 4,100," Saxo Bank wrote.

The dollar was higher early, with the ICE dollar index last seen up 0.12 points to 101.15. Treasury yields were mixed, with the yield on the US two-year note last seen down 0.02 basis points to 4.195%, while the 10-year note was paying 4.565%, up 0.9 points.