Gold prices fell 2% ‌on Thursday, as crude prices once again rose above the $100 mark, reigniting concerns of rising inflation, with investors mostly ​pricing out any chance of U.S. interest rate cuts this year.

Spot gold was down 1.4% at $4,441.20 per ​ounce by 1024 ​GMT after falling 2% earlier. U.S. gold futures for April delivery lost 2.5% to $4,438.50.

Oil rose about 3% on Thursday, clawing back losses from the previous session on ⁠concerns that protracted fighting in the Middle East will further disrupt energy flows.

The conflict in Iran and its potential negative impact on the global economy have enhanced the appeal of the U.S. dollar as a safe haven, said ActivTrades analyst Ricardo Evangelista.

"This dynamic is being ​reinforced by ‌concerns that the energy ⁠crisis will continue ⁠to push inflation higher, forcing central banks, including the Federal Reserve, to adopt a more hawkish stance. This, ​in turn, supports the U.S. dollar and bond yields, weighing on ‌the precious metal."

Benchmark U.S. 10-year Treasury yields were ⁠up near eight-month highs.

A stronger dollar makes gold more expensive for international buyers, while higher Treasury yields increase the opportunity cost of holding the metal. While gold is seen as an inflation hedge in the long term, higher interest rates dim the non-yielding asset's appeal.

Markets see a near 38% chance of a U.S. rate hike by December this year with 93% pricing in rates being held steady at the Federal Reserve's April policy meet, according to CME Group's FedWatch Tool. Traders only see a 3% chance of a rate cut, ‌that too, in December. Before the conflict, markets were expecting at ⁠least two rate cuts in 2026.

U.S. President Donald Trump said ​Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign minister who said his country was reviewing a U.S. proposal but had no intention ​of holding talks ‌to wind down the conflict.

Spot silver fell 4.2% to $68.31 per ounce. ⁠Spot platinum was down 1.8% at $1,884.61, while ​palladium shed 3.4% to $1,375.49.