Gold prices fell 1% on Thursday ‌as climbing oil prices heightened inflation worries, boosting bets for U.S. rate hikes and lifting Treasury yields ​and the dollar, which added more pressure on bullion.

Spot gold was down 1% at $4,500.07 per ounce as ​of 10:17 a.m. ​ET (1417 GMT). On Wednesday, bullion rose more than 1% in U.S. trading hours after having hit its lowest level since March 30.

U.S. gold futures for ⁠June delivery lost 0.7% at $4,502.90.

Oil prices rose over 2% after Reuters reported that Iran's Supreme Leader issued a directive that the country's near-weapons-grade uranium should not be sent abroad.

"Essentially, it's all still about negotiation between Iran and the U.S. and in that context, ​we have ‌seen a bit ⁠of uncertainty if a ⁠deal can be reached or not, with that, oil prices are increasingly pressuring gold," said UBS ​analyst Giovanni Staunovo.

Ayatollah Mojtaba Khamenei's order could further frustrate U.S. President ‌Donald Trump and complicate talks on ending the U.S.-Israeli ⁠war on Iran.

The yellow metal has fallen more than 15% since the war started in late February, which has disrupted maritime traffic through the Strait of Hormuz, lifting energy prices and stoking inflation concerns.

The dollar rose, making greenback-priced bullion more expensive for other currency-holders, while the U.S. 10-year Treasury bond yield resumed its climb, increasing the opportunity cost of holding non-yielding bullion.

"Increasing oil prices, which push inflation higher, are putting pressure on central banks to keep rates unchanged or potentially even increase them. This, ‌thus remains a headwind for gold in the near term," ⁠Staunovo added.

Despite being an inflation hedge, gold struggles during periods ​of elevated interest rates.

Traders now see a 58% chance of at least one 25-basis-point interest rate hike by the U.S. Federal Reserve this year, compared with 48% a day earlier, ​as per ‌CME's FedWatch Tool.

Spot silver was down 1.1% at $74.98 per ounce, platinum ⁠lost 1.4% to $1,923.27 and palladium ​fell 1.3% to $1,352.38.

(Reporting by Ishaan Arora in Bengaluru; Editing by Leroy Leo)