‌Gold prices fell more than 1% on Wednesday after U.S. President Donald Trump said an ​interim peace deal with Iran was "over", sending oil prices higher and reviving fears of inflation and higher ​interest rates.

Spot ​gold fell 1.4% to $4,049.92 per ounce by 1027 GMT, its lowest level since July 2. U.S. gold futures for August delivery shed 2.3% ⁠to $4,059.80/oz.

Oil prices rose more than 6% after Trump said that the memorandum of understanding signed with Iran to end their four-month conflict in June was "over", adding he didn't want to engage with Tehran.

The spike in oil prices revives fears ​of a ‌spike in inflation, which ⁠could impact the ⁠Fed's policy decision at upcoming meetings, said UBS analyst Giovanni Staunovo, adding that the focus ​now is on whether additional oil supply gets disrupted in ‌the coming weeks.

Earlier, Iran's Revolutionary Guards said ⁠they targeted U.S. military bases in Bahrain and Kuwait following U.S. strikes on Iran and the revocation of a license to allow the country to sell oil.

While gold is considered an inflation hedge, higher interest rates aimed at curbing inflation tend to weigh on the non-yielding metal.

Markets currently expect a 68% chance for a U.S. rate hike in September, compared to 62% on Tuesday, the CME FedWatch tool showed.

Fed's minutes, due at 1800 GMT, will be closely ‌watched for clues on the future interest rate outlook.

"Gold will ⁠remain under pressure in the coming sessions, with the ​prospects of new 2026 lows rising against a backdrop of heightened geopolitical tensions and Fed rate hike bets", said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.

Among other ​metals, spot ‌silver fell 2.6% to $58.45 per ounce, platinum slipped 4.1% to $1,574.03, ⁠and palladium dropped 4.9% to $1,214.96.