Gold fell ‌on Wednesday, weighed by a stronger dollar and rising oil prices as continuing conflict in the Middle ​East dimmed hopes for a swift resolution to the U.S.-Iran conflict.

Spot gold fell 0.5% to $4,463.74 per ​ounce by ​1128 GMT. U.S. gold futures for August delivery slipped 0.6% to $4,492.00.

Gulf hostilities flared again on Wednesday, with an Iranian missile attack damaging Kuwait's airport and ⁠the U.S. military carrying out strikes near the Strait of Hormuz, as diplomacy between Washington and Tehran showed little progress.

"Gold is under pressure, knocking on the $4,450 support level due to renewed clashes in the Middle East. Fading hopes of an imminent U.S.-Iran peace ​deal are ‌likely to keep ⁠oil prices elevated," said ⁠Lukman Otunuga, senior research analyst at FXTM.

The dollar rose 0.1% and oil prices extended ​gains for the third straight session. Higher oil prices stoke ‌inflation risks, increasing chances of higher-for-longer interest rates.

Although gold ⁠is typically viewed as a hedge against inflation, it tends to lose its appeal as a non-yielding asset when in a high interest-rate environment.

Markets, which had expected two U.S. interest rate cuts this year before the Iran war, are currently pricing in a 42% chance of a 25-basis-point rate hike in December, according to CME Group's FedWatch tool.

Cleveland Federal Reserve President Beth Hammack said on Tuesday the U.S. central bank may need to raise interest rates soon should already-high inflation ‌pressures continue to mount.

Investors now await the U.S. nonfarm ⁠payrolls data for May due on Friday to gauge the ​U.S. Federal Reserve's monetary policy path.

A strong jobs report could add momentum to gold's decline, especially if it results in more traders pricing in an interest rate hike by December, ​said Otunuga.

Spot ‌silver fell 1% to $74.37 per ounce, platinum lost 0.4% to $1,929.80, ⁠and palladium was down 1.3% at $1,351.75.