Gold prices fell to a near one-week low, pressured by a stronger dollar, while a surge in oil prices following failed US-Iran peace talks fuelled inflation worries and dampened expectations for Federal Reserve interest rate cuts this year, reports Reuters.

Spot gold was down 0.6 per cent at $4,718.98 per ounce, as of 0222 GMT, after hitting its lowest level since April 7 earlier in the session. US gold futures for June delivery fell 1pc to $4,742.

The dollar strengthened 0.4pc while oil prices jumped above $100 a barrel, as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments after the US and Iran failed to reach a deal to end the war.