Gold prices extend losses after falling to a seven-month low in the previous session, as fading prospects of a permanent US-Iran peace deal have heightened inflation concerns and bolstered expectations of Federal Reserve rate hikes, according to Reuters.

Spot gold down 0.6 per cent at $3,981.69 per ounce, as of 0112 GMT, after hitting its lowest level since last November in the previous session.

US gold futures for August delivery lost 1.1pc to $3,994.40.

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