Gold prices have fallen more than one per cent after US President Donald Trump said the interim peace deal with Iran was “over”, sending oil prices higher and stoking fears of inflation and higher US interest rates.

Spot gold fell 1.02pc to $4,063.67 per ounce by 8:50 GMT (1:50pm PKT), after dropping to its lowest since July 2 earlier in the session. US gold futures for August delivery shed 1.97pc to $4,074.80/oz.