Gold prices fell on Wednesday after hitting a seven-month low in the ​previous session, pressured by higher Treasury yields, while fading prospects of a permanent U.S.-Iran peace deal kept concerns over ​inflation and ​Federal Reserve rate hikes elevated.

Spot gold was down 0.7% at $3,979.41 per ounce, as of 0300 GMT. In the previous session, bullion slipped to $3,942.99 per ounce, its lowest ⁠point since last November.

U.S. gold futures for August delivery lost 1.1% to $3,992.70 on Wednesday.

Bullion recorded its largest quarterly drop since 2013 on Tuesday, and fell for a fourth consecutive month in June, as tensions in the Middle East heightened inflation concerns and bolstered Fed ​rate-hike expectations.

"It ‌looks like the ⁠pressure from higher ⁠yields is what's getting gold lower. The U.S. dollar is also a touch higher at the same ​time, which kind of confirms what's going on," said Ilya Spivak, ‌head of global macro at Tastylive.

The dollar strengthened, ⁠making greenback-priced bullion more expensive for holders of other currencies, while yields on the benchmark 10-year U.S. Treasury note advanced higher.

Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday it remains possible that she'll advocate for higher interest rates if inflation pressures fail to ease, underscoring a still-hawkish policy outlook.

Traders are pricing in roughly a 67% chance of a rate hike for September, according to the CME FedWatch Tool, reflecting firming expectations of tighter monetary policy.

Investors now await the June ADP employment data, due ‌later in the day, and nonfarm payroll figures on Thursday for ⁠further clues on Fed's rate path, which could shape near-term ​moves in bullion.

Oil prices rose as Iran said it would not meet with senior U.S. envoys who travelled to the region following an outbreak of hostilities, dimming prospects for a near-term diplomatic breakthrough.

Spot ​silver fell ‌1.4% to $57.75 per ounce, platinum lost 0.6% to $1,542, having hit its ⁠lowest since last November, and palladium inched ​0.4% lower to $1,199.34.

(Reporting by Pablo Sinha in Bengaluru; Editing by Sherry Jacob-Phillips)