Gold drops to 2-week low as oil surge drives inflation, rate-hike fears

Gold fell to a two-week low at around $3,993.83 per ounce after shedding about 3% in the prior session as surging oil prices and renewed US-Iran conflict stoked inflation and rate-hike fears. Oil futures climbed about 9% to their highest since mid-June following US strikes on Iran and tanker attacks in the Strait of Hormuz. CME FedWatch now shows about 78% probability of a September US rate hike, up from 57% a week ago, with traders awaiting June US CPI data.