01:44 PM EDT, 07/08/2026 (MT Newswires) -- (Updates prices in the second and final paragraphs.)

Gold traded lower 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 down $80.90, or 2%, to $4,076.50 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. President Donald 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 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 edged lower with the ICE dollar index last seen down 0.4 points to 100.59. Treasury yields rose, with the yield on the US two-year note last seen up 2.7 basis points to 4.225%, while the 10-year note was paying 4.581%, up 2.5 points.